Airbus, the European aircraft manufacturer, is currently in talks for a potentially groundbreaking contract with low-cost carrier IndiGo. The contract would involve the sale of 500 narrow-body A320 family aircraft, following a previous record order from Air India for 470 Airbus aircraft earlier this year. While the deal has the potential to exceed $50 billion based on recent Airbus list prices, industry concessions for bulk purchases are expected to significantly lower the final value.
IndiGo, which is one of Airbus' key clients, has already placed orders for 830 A320-family aircraft, with over 500 of them still awaiting delivery. In addition to this deal, Airbus and Boeing are both competing to sell either 25 A330neo or Boeing 787 wide-body jets to IndiGo.With a commanding 56% market share in India, IndiGo has ambitious plans to expand its capacity and extend its network, particularly in international markets.
CEO Pieter Elbers has expressed the airline's intentions to pursue growth and seize opportunities in the coming years. Both Airbus and Boeing have been securing lucrative contracts extending well into the 2030s as airlines look to secure their future fleet requirements due to anticipated shortages in the industry.
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