A possible record contract to sell 500 of the A320 family’s narrow-body aircraft to low-cost carrier IndiGo is being approached by European aircraft manufacturer Airbus. Airbus has become the front-runner for this order following Air India’s record preliminary purchase of 470 Airbus aircraft in February of this year, according to Reuters, which cited industry sources speaking on the sidelines of an industry.
According to aviation experts, the transaction might potentially be worth more than $50 billion at the most recent Airbus list pricing, but after accounting for concessions offered by the airline industry for bulk purchases, it would only be worth around half that much. One of Airbus’ biggest clients, IndiGo has placed orders for 830 Airbus A320-family aircraft, of which over 500 are currently awaiting delivery.
According to the report, “Airbus and Boeing are also competing in separate talks to sell 25 A330neo or Boeing 787 wide-body jets to the same airline.” In India, IndiGo holds a 56% market share.
IndiGo Chief Executive Pieter Elbers had previously stated to analysts during an earnings call last month that IndiGo intends to increase its capacity by the end of the decade and extend its network, particularly in overseas markets.
As airlines secure supplies far in advance due to impending shortages, Airbus and Boeing have been racking up new contracts worth billions of dollars that extend through 2030.