According to Bloomberg, Airbus is anticipated to announce a significant development at the Paris Air Show, potentially unveiling a ground-breaking agreement with IndiGo, an Indian carrier.
An Agreement to be Reckoned With
Sources indicate that the agreement could involve an order of 500 A320neo family aircraft for $50 billion or Rs 4 Lakh Crore, which would be a record-breaking order for Airbus. The negotiations are still ongoing, and the exact details of the deal may change as discussions progress.
This is officially, the biggest order for buying new aircrafts by any Indian airline, ever.
Additionally, Airbus is reportedly working on securing a substantial narrowbody order with Flynas Co., a Saudi carrier. Both deals have the potential to be highlights of the event, but negotiations for both transactions are still underway. Representatives from Airbus, IndiGo, and Flynas declined to provide official statements regarding these developments.
Airbus CEO Excited About Paris Air Show
The CEO of Airbus, Guillaume Faury, expressed enthusiasm about the Paris Air Show, stating that it would signify a return to a time of industry growth and excitement. Prior to the show, Airbus had already announced deals for 60 A320 family aircraft and 10 A350s from undisclosed customers, setting a positive tone for potential orders in the coming days. IndiGo, which already has a significant backlog of aircraft from previous agreements, including a 300-plane order in 2019, is reportedly close to finalizing a record deal with Airbus.
They are also considering a separate purchase of widebody aircraft, with both Airbus and Boeing competing for an order of approximately 25 aircraft. The situation regarding the widebody aircraft order remains fluid, with one source suggesting that Boeing may have an advantage in securing the deal with its 787 Dreamliner.
However, Boeing officials have chosen not to comment on the matter. If the agreement with IndiGo materializes, it would surpass Air India’s recent order of 470 aircraft from both Airbus and Boeing. This order is part of Air India’s efforts to rebuild its operations with a modern fleet under new ownership. IndiGo currently holds a significant market share in India’s domestic flying market, accounting for close to 60% of the market.
