IndiGo to freeze Rs72,000 crore order for 180 planes today

Budget carrier IndiGo could confirm a historic $16 billion order for 180 Airbus aircraft at the Paris Air Show on Wednesday, industry sources said.

The deal was announced in January but has been mired in further negotiations before it could be signed and go into the Airbus order book in a boost for parent EADS.

The deal is seen as the largest commercial jet order by number of aircraft but could be eclipsed by a roughly 200-plane order expected from AirAsia on Thursday.

Airbus declined to comment.

—With DNA inputs

Last week, IndiGo president Aditya Ghosh confirmed the deal in New Delhi at a press conference to announce its overseas flights.
He said the planes will supplement the 100 aircraft order placed at the time of the airline’s inception.

Ghosh also said that such a large order Airbus was necessary keeping Indian aviation growth projections in mind.

IndiGo claims to be fastest-growing low-cost carrier anywhere in the world. In the last fiscal, it became No. 2 in market share, a few steps behind Kingfisher Airlines, at 17.6%.

IndiGo has not spoken about how it plans to finance the order, but is widely believed to be exploring several options, including an IPO.

In January, the airline ordered 150 revamped A320neos, which are promising fuel savings when they enter service in 2015, as well as 30 A320s.