Airbus wins record order for 500 aircraft from India’s IndiGo

PARIS, June 19 (Reuters) – Airbus of Europe (AIR.PA) announced the largest-ever aircraft deal on the opening day of the Paris Air Show on Monday, with an order for 500 narrow-body jets from Indian airline IndiGo. (ENGL.NS).

The multibillion-dollar deal is the largest ever by number of planes, dwarfing from Air India provisional purchase of 470 jets early this year, as India’s two largest airlines plan a strong expansion in demand for regional travel.

The agreement follows months of negotiations first. reported by Reuters.

“This is just the beginning, there is more to come. With the growth of India (and) the growth of the Indian aviation market… this is the right time for us to place this order,” said IndiGo’s chief executive, Pieter Elbers. Press conference.

The aircraft will be delivered between 2030 and 2035.

Efforts by Indian airlines to keep pace with the world’s fastest-growing aviation market, serving the largest population, have brought down industry records even as manufacturers are struggling to meet standards. production goals.

Indian carriers now have the second-largest order book, with a share of more than 6% of the industry’s order book, behind only the United States, according to a June 1 report from Barclays.

But some analysts have raised concerns that airlines could be over-requesting planes in pursuit of the same passengers.

After signing the deal with IndiGo, Airbus CEO Guillaume Faury said it was premature to start thinking about narrow-body production rates higher than the planned 75 per month.

IndiGo, which accounts for nearly 60% of the Indian domestic market, was widely expected to keep Airbus as its single-aisle supplier to gain more economies of scale.

It continues to hold separate talks with Airbus and rival Boeing. (PROHIBITION) for 25 wide-body jets, which could be Airbus A330neo or Boeing 787 jets, the sources said.

Reporting by Tim Hepher and Joanna Plucinska Additional reporting by Aditi Shah Editing by Mark Potter

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