Friday, 17 October 2014

IndiGo Again Goes on Bulk Buying Spree, this Time with 250 Airbus A320neos

When other Indian carriers are busy watch their plummeting profitability, IndiGo has ventured on another bulk buying spree of airplanes. In a recent record-breaking order of 250 Airbus A320neos, IndiGo plans to deepen and strengthen its market base in Indian aviation sector. With this order IndiGo has retained its faith in Airbus yet again, this time in the new and the more fuel efficient version of the aircraft- the A320neos. These are also single-aisle, narrow bodied airplane like their previous avatars.

In an industry and in a market like India where aviation fuel costs contribute to about 40 percent of the operational costs, going for the fuel efficient airplanes is aimed to reduce the costs of operations with the ultimate aim of providing cheap air tickets to the customers. It is also noteworthy that the airline will be facing immense competition in years to come as Tatas make foray with AirAsia, the famed LCC of Malaysia.

The deal augurs good for Airbus as it has seen cancellation of orders from other Asian carriers such as AirAsia and Tiger Airways recently.

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