IndiGo places order for 500 Airbus A320 aircraft: Is it eyeing market dominance?

Indian low-cost carrier IndiGo announced a record order of 500 A320 family aircraft from the European manufacturer, Airbus at the Paris Air Show on Monday. With this order, the total nuber of Airbus orders by Indigo stands at 1,330 aircrafts. The estimated list price of the order stands at $50 billion, however, the actual price remains unclear.

"IndiGo, India’s largest airline by market share, has placed a firm order for 500 A320 Family aircraft, setting the record for the biggest single purchase agreement in the history of commercial aviation. The latest agreement takes the total number of Airbus aircraft on order by IndiGo to 1,330, establishing its position as the world’s biggest A320 Family customer," an official release stated.

.@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

Market Domination

The multibillion-dollar narrowbody agreement surpasses Air India's order of 470 planes earlier this year as India's two leading carriers prepare for a dramatic increase in regional travel demand, which is the greatest ever by the number of aircraft.

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.

IndiGo to expand wings on international routes

“It is difficult to overstate the significance of IndiGo’s new historic order for 500 Airbus A320 Family aircraft. An order book now of almost 1000 aircraft well into the next decade, enables IndiGo to fulfil its mission to continue to boost economic growth, social cohesion and mobility in India,” Pieter Elbers, CEO of IndiGo has told in his statement.

Chief Commercial Officer and Head of International at Airbus, Christian Scherer said, “This landmark order marks a new chapter in Airbus and IndiGo’s relationship that is democratising affordable air travel for millions of people in the world’s fastest-growing aviation market.”

IndiGo has partnered with Turkish Airlines as a codeshare partner to expand its reach to Europe. The A320 Neo series includes the highly efficient and technologically sophisticated A320 Neo, A321 Neo, and A321 XLR aircraft.

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.