(Original title: 500 passenger aircraft, 55 billion US dollars! Airbus won the largest single order in history, and the stock price hit a new high in more than 3 years!)

According to a CCTV Finance report on June 20, Airbus (EADSY) won a large order from India’s Indigo Airlines. According to reports, India’s Indigo Airlines purchased 500 A320 series passenger aircraft from Airbus at one time, setting a record for the largest single order in the history of commercial aviation. Airbus will deliver the passenger aircraft successively from 2030 to 2035. Boosted by the news, Airbus shares closed at their highest level since November 2019 on Monday.

It is reported that Indigo Airlines accounts for 56% of the market share in the Indian domestic market and is the largest airline in India. The above-mentioned agreement brings the total number of Airbus aircraft ordered by IndiGo to 1,330. It is reported that the delivery of these A320neo aircraft will start in 2030 and extend to 2035.

“This is just the beginning, and there will be more in the future. With the growth of the Indian aviation market… this is the right time for us to place an order.” On June 19, Reuters quoted IndiGo CEO IPieter Elbers at the press conference. expression said.

According to the Wall Street Journal reported by the media, according to the list price, the deal is 55 billion U.S. dollars, and according to the latest list price, it is usually discounted by up to 50%. The above-mentioned aircraft is planned to be delivered between 2030 and 2035. Pieter Elbers said the deal highlighted the growth potential of the Indian aviation market and would more than double the size of IndiGo’s current fleet of about 300 aircraft.

It is worth noting that French President Macron also attended the Paris Air Show that day. He visited the latest jet A321XLR developed by Airbus and watched the flight performances of French Rafale fighter jets and other air forces.

Buyer is India’s largest passenger airline

According to the official website of Indigo Airlines, since its establishment in August 2006, the low-cost airline IndiGo has become India’s largest passenger airline, with an all-Airbus fleet of over 300 aircraft. Its domestic market share in India is 61.4% as of May 2023.

According to Airbus, since IndiGo took delivery of the first A320neo aircraft in March 2016, its A320neo family fleet has grown into one of the largest fleets in the world, with 264 aircraft in operation. Indigo Airlines had previously purchased 100 A320 series aircraft from Airbus in 2005, 2011, 2014 and 2019, bringing its previous total orders for A320 series aircraft to 830.

At this year’s Paris Air Show, some Indian media asked whether the Airbus A320 will be produced in India if India has a huge order? In this regard, Airbus CEO Faury said that Airbus has A320-related design and manufacturing operations in India. By 2026, after China‘s second A320 production line is completed, there will be 10 A320 production lines in the world, capable of achieving a monthly production capacity of 75 aircraft.

IndiGo CEO Pieter Elbers said at a press conference: “The importance of this historic order cannot be overemphasized, but this is just the beginning and there is much more to be done. With India’s The development and growth of the aviation market in India…now is the right time for us to place our order.”

Already the largest customer of the A320neo, IndiGo has bold expansion plans, expecting to double its “size and strength” by the end of the decade and to increase its presence in Central Asia. Indian Prime Minister Narendra Modi previously stated that India will become the third largest aviation market in the world, and the Indian aviation industry will need more than 2,000 aircraft in the next 15 years.

In addition, IndiGo continues to hold separate talks with aircraft maker Airbus and rival Boeing for 25 wide-body jets, which could be Airbus A330neo or Boeing 787s, the sources said. In this regard, Reuters stated that Indigo Airlines has not yet responded.

On the eve of the Paris Air Show, Boeing released the Civil Aviation Market Outlook. It clearly mentioned that before 2042, the average annual growth rate of the fleet in South Asia will exceed 7%, which is the highest in the world, and the passenger flow in India accounts for more than 90% of the region.

The 20-year outlook report on the Indian market released by Airbus in 2022 also shows that India’s civil aviation passenger traffic will maintain an annualized growth rate of 6.2% before 2040, ranking first among the world‘s major economies. In the future, the demand for mainline passenger aircraft in India will reach 2,210, including 1,770 narrow-body and 440 wide-body aircraft.

The Chinese Academy of Civil Aviation Science and Technology’s previous article analyzed that the rapid growth of the Indian aviation industry is inseparable from factors such as the stable development of the Indian economy, the continuous growth of the population, the opening of India’s domestic skies, and the fierce competition of low-cost airlines to promote market prosperity.

In recent years, many airlines in India have been expanding their fleets on a large scale. In addition to IndiGo, which announced an order for 500 Airbus aircraft at the Paris Air Show this time, Air India, a subsidiary of the Tata Group, announced its commitment to order 250 Airbus aircraft in February this year. At the same time, it also ordered 220 aircraft from Boeing, with a total of 470 aircraft.

Air India orders 470 planes in February

The IndiGo deal tops a record set in February when the Indian carrier bought 470 planes from Airbus and Boeing. Unexpectedly, just four months later, the record for the largest passenger aircraft order in history was once again refreshed.

According to a report by the Global Times on February 17, Air India announced in early February that it would order a total of 470 aircraft from European Airbus and American Boeing. According to analysis, the huge order highlights the ambition of Indian airlines to seize domestic market share. The new order includes 250 Airbus planes and 220 Boeing planes. Air India said the first batch of the newly procured aircraft is expected to be operational by mid-2023 and the rest will be delivered after mid-2025.

According to the “Financial Times” report, regarding the transaction payment, Airbus has not yet disclosed details. Listings for Boeing aircraft totaled $34 billion, making the deal the third-largest in Boeing history.

And this Indian airline, which was almost bankrupt three years ago, can now place such a large order, and the biggest support comes from the company behind it-India Tata Group. In 2021, a Tata subsidiary of India’s Tata Group will acquire Air India for 180 billion rupees (about 15.474 billion yuan) and modernize its aging fleet.

The move by Air India is aimed at boosting both domestic and international market share. Agence France-Presse reported that Air India is still the country’s largest international flight carrier, but its domestic aviation market share will only account for less than 9% in 2022. Air India aims to have a domestic share of 30% by the end of 2027, while also covering more international routes.

According to the British Broadcasting Corporation (BBC), Indian passengers have been relying on Emirates, Qatar Airways and other Middle Eastern airlines to travel between Europe, the United States and other parts of the world. Aviation industry analyst Mark Martin said the record orders could change that. He believes the new order will allow Air India’s fleet to be directly aligned with Lufthansa and Singapore Airlines, both members of Star Alliance, the world‘s largest global airline alliance. “In my view, this is a big plan to counter the dominance of Gulf Air, which has been Star Alliance’s main ‘rival’.”

Disclaimer: The Securities Times strives for truthful and accurate information, and the content mentioned in the article is for reference only and does not constitute substantive investment advice, so operate at your own risk

Download the “Securities Times” official APP, or follow the official WeChat public account, you can keep abreast of stock market trends, gain insights into policy information, and seize wealth opportunities.

Article source: https://airlines.einnews.com/article/640467158/IvqWjpGEbVaT47Ds?ref=rss&ecode=vaZAu9rk30b8KC5H

Leave a Reply