'IndiGo is securing its future': CEO Pieter Elbers on order of 500 Airbus aircrafts

InterGlobe Aviation Ltd, the operator of India’s largest airline, IndiGo placed a record order of 500 Airbus A320 family aircraft on Monday at the Paris Air Show. The airline has the flexibility to decide its fleet size by 2035 as it secures its future by placing an order of this magnitude, its CEO Pieter Elbers said on Monday. 

In a press conference at the Paris Air Show on Monday, Elbers said, “We are expecting to double in size by 2030. We have ordered another 500 aircraft now. We have the flexibility on what would be the precise magnitude and size of the company by 2035.” IndiGo operates a fleet of 269 Airbus A320 family aircraft and 39 ATR 72-600 aircraft.

Today we have set another truly momentous and very exciting step in the journey of IndiGo as we placed a firm order for 500 Airbus of the A320 Family. This is the largest-ever single aircraft purchase by any airline with @Airbus. #goIndiGo pic.twitter.com/8ix3TSivIT

— IndiGo (@IndiGo6E) June 19, 2023

World’s largest commercial aviation order

IndiGo beat Tata Group-backed Air India as it placed the largest commercial aviation order. The order comprises the A320 neo (new engine option), A321 neo and the A321XLR (xtra long range) however an exact division remains unclear. The addition of the new planes will begin in 2030 and conclude by 2035.

Elbers stated that “IndiGo has a track record of placing timely orders for planes. As we are approaching 2030, we still have plenty of time and flexibility to optimise what is going to be the precise mixture of A320s and A321s and possibly XLRs.”

.@Indigo6E & Airbus making history at #ParisAirShow with a deal for 500 #A320neo Family aircraft. The biggest single purchase agreement in the history of commercial aviation will contribute to democratising affordable & efficient air travel in India. https://t.co/0vbRdZ8kQS pic.twitter.com/m7goSdOhoQ

— Airbus Newsroom (@AirbusPRESS) June 19, 2023

The airline already has its log books complete with orders of 480 aircraft from the European manufacturer which are expected to be delivered by 2030. The company aims to have approximately 620 aircraft by 2030, as it continues to retire its older planes in favour of a younger fleet, resulting in reduced operational and fuel costs. However, the number of planes that will be retired by 2030 is unclear.

IndiGo’s plans for wide-body operations

The airline operates a fleet of two Boeing 777-300 which it wet-leased from its codeshare partner, Turkish Airlines. These aircraft operate on the New Delhi - Istanbul and Mumbai - Istanbul routes. 

IndiGo has not denied any plans to operate wide bodies however with the record order, wide bodies don't seem to be a part of IndiGo's inventory in the near future. 

“Aviation is a more long-term business than any other. This will allow us in the long-term planning of the flight network,” he said.

He further stated that “We have just placed a historic order, the largest ever placed by any airline in the world. So, please allow us to enjoy this moment of joy and excitement. From tomorrow onwards, you can ask me any question on wide-bodied aircraft.”

“The fact is that today, IndiGo has a steady flow of aircraft coming in and today, we have all the challenges related to supply chain and delays and so on. Despite that, IndiGo has a steady flow of aircraft coming in. So, what we are doing here is that we are securing our future and by placing this order, we now have a planning horizon of over 10 years,” the IndiGo CEO added.

Domestic market domination

IndiGo breached the 60 per cent market share in May’23 as it dominated with a 61.4 per cent market share as annual passenger traffic saw a 36.1 per cent growth with a monthly increase of 15.24 per cent as per data by the Directorate General of Civil Aviation (DGCA).

With a mammoth share of the domestic Indian market, IndiGo has been able to seize the market thanks to its vast fleet and more destinations as its competitors struggled. IndiGo has cemented its place as one of the biggest Airbus clients.

Pieter Elbers has outlined the airline's plan to increase its international seat share from 23 per cent in 2023–2024 to 30 per cent during the next two years. The airline operates well over 1.800 daily flights linking 78 domestic and 26 overseas destinations with its fleet of more than 300 aircraft.