IndiGo commits to 180 A320s, to launch A320NEO

some A320 orders in the future can be cancelled to accommodate induction of A330s by IndiGo.

Looks good in press releases but let’s wait on the actual deliveries

wow! while Sukhoi superjet, Mitsubishi MRJ, and Bomberhead C series are fighting for orders of French Fries, here comes a big combo of a meal from Indigo whose sole order eclipses most of those guys!

I guess Airbus and maybe Boeing won’t give up the regional market with out a fight. I just hope that within the battle of these two big giants, that the little guys S&M, and Bomb, can put a dent in the market

!

Hi Hotdog
Looks good in press releases but let’s wait on the actual deliveries

The order from the 2005 Paris Air Show as yet haven’t been delivered. Fleet at Indigo still showing 34 + 5 leased a/c.

The new order (MOU only) is supposed to apply to from 2016 and 2025. Long time yet.

Some may not actually be purchased or delivered – it will depend on growth in the geographical sector.

wow! while Sukhoi superjet, Mitsubishi MRJ, and Bomberhead C series are fighting for orders of French Fries, here comes a big combo of a meal from Indigo whose sole order eclipses most of those guys!

I guess Airbus and maybe Boeing won’t give up the regional market with out a fight. I just hope that within the battle of these two big giants, that the little guys S&M, and Bomb, can put a dent in the market!

I found this on the Airbus site post Paris Air Show 2005

I found this on the Airbus site post Paris Air Show 2005

http://events.airbus.com/A380/EVENTS/lebourget2005/articleDetail.aspx?ArtId=453

JUNE 16, 2005
INDIAN CARRIER INDIGO ORDERS 100 FIRM AIRBUS A320 FAMILY AIRCRAFT
InterGlobe Enterprises Limited today announced its plans to launch IndiGo, its nation-wide low-cost airline venture. IndiGo has committed for 100 firm A320 family aircraft with Airbus – world renowned for the customer friendly features and comfort of its airliners.
The venture is being jointly promoted by InterGlobe Enterprises Limited and Rakesh Gangwal, globally recognized for his management skills and expertise in the airline industry.

“IndiGo is the result of extensive analysis and planning by very experienced airline executives and we are convinced it will be a successful new player in a market that is both large and fast growing,” says Airbus President and CEO Noël Forgeard. “Airbus A320 Family aircraft have been chosen by many of the world’s new and successful low-cost carriers, and we like to think that our products are making a valuable contribution to their prosperity.”

Wikipedia adds fuel to the fire with the aircraft numbers for Indigo but adds the possibility that additional to the 34 in the current fleet there are 5 on short term lease.

The actual numbers before 2016 is what I am keen on

from beancounter to beancounter:

If you rotate planes every 6 years and have orders from 2015 to 2025 you have probably already ordered the replacements of the replacements.

On another note, the livespan of an aircraft type is getting very long. The A320 familly now has orders till 2025 that would be 35? years in production. The 737 and 747 have already been in production longer. Where is the variation for us spotters coming from?

rgds
EC

Hi civilspotter
The actual numbers in service before 2016 is what I am keen on.

KabirT in his post above has indicated that there was an order placed at the 2005 Paris Air Show.

In theory if the 2005 Paris orders are firm then they should be showing as in actual service quite shortly and hopefully account for the additional 46 (80 of the 180 on MOU are replacements) or a phased replacement of the existing 34 or some of them.

As you say the 6 year rotation may then make a little bit more sense of the 80 on MOU over 9 years as replacements of replacements and the 100 as growth and possibly eventually some as replacements.

I personally for a LCC/LCA would rotate a/c out of service on actual hours in the air rather than on a pure 6 year period (yes possibly a personal statement with regards amortisation/depreciation)

I share your opinion from a spotters perspective though of the longevity of models depriving us of much visual variation.

Does the 2006 Paris Air Show order account for the balance 46?

nJayM: do not forget the order IndiGo places during the 2006 Paris air show.

Hi kabirT

Does the 2005 Paris Air Show order account for the balance 46?

(80 on new MOU as replacements – 34 in actual current service)

Are there firm delivery dates for the complete 2006 Paris Air Show order ?

nJayM: do not forget the order IndiGo places during the 2006 Paris air show.

from beancounter to beancounter:

If you rotate planes every 6 years and have orders from 2015 to 2025 you have probably already ordered the replacements of the replacements.

On another note, the livespan of an aircraft type is getting very long. The A320 familly now has orders till 2025 that would be 35? years in production. The 737 and 747 have already been in production longer. Where is the variation for us spotters coming from?

rgds
EC

Somewhere the numbers aren’t ……

some more info…

“Our info is 80 planes are replacement and 100 are growth. IndiGo uses planes on 6-year sale/leaseback.” – Reuters

Hi KabirT

Somewhere the numbers aren’t falling in to place.

Indigo’s current fleet details are (source Indigo Web site 13 Jan 2011)-
Aircraft Airbus A320-200; Total in Service 34; Seats 180
Engines IAE V2500

Yet you say 80 planes are replacement. (of the 180 on a MOU)
For what aircraft (they currently have 34 Airbus A320-200 – where are the balance 46 coming from) and when?

Nothing personal here just my ‘bean counter’ arithmetic may be bad but not that bad.

Totally my point about possibly ‘wild’ forecasting/extrapolation

Hang on, this is an MOU. Meaning not an order. IndiGo (however unlikely) can still back out with ease.
Expect another announcement for another order (which will be this one being signed for) soon. Making it look like to Job Bloggs, they have two 180 frame orders.

Hi Bemused55

Totally my point in my earlier post about possibly ‘ultra optimistic’ business forecasting/extrapolation.
An MOU is no where close to a real order.
Juggling words in English does not increase the real cash flow to EADS/Airbus. May re-assure less astute bankers but not real ‘bean counters’.

I am assuming there will be possibly many considerations (some mentioned in posts here already) requested by Indigo before the actual money gets paid and the MOU converts to a firm order of 180 or maybe finally much less.

I suspect it is a lot of ‘hype’ and ‘bait’ as a possible attempt to transfer technology (part assembly) to India.

Shucks possibly more EU job losses.

some more info…

“Our info is 80 planes are replacement and 100 are growth. IndiGo uses planes on 6-year sale/leaseback.” – Reuters

Yes it is a little confusing via the press release but its a confirmed deal. Now we have to see who gets the engine deal.

Hang on, this is an MOU. Meaning not an order. IndiGo (however unlikely) can still back out with ease.
Expect another announcement for another order (which will be this one being signed for) soon. Making it look like to Job Bloggs, they have two 180 frame orders.

Threads merged.

The NEOs will replace the existing 320s in the future as well.

180 A320s!:eek:
You’d think that the Indian government would insist upon final assembly in India for such a big order? The Chinese already do it.
The Indian air force’s MMRCA future fighter will be assembled in India (126 to be ordered) why not 180 A320s?:confused:

Interesting from a bean counter’s perspective

WOW, I did not see that one coming at all! That’s a whole lot of planes! Does IndiGo intend to operate all of them, or will the last deliveries be used to replace the first deliveries? Kind a like Ryanair replacing their planes before their first D-chek (?) comes due.

Interesting from a bean counter’s perspective – (mine).
Their current fleet details are –
Aircraft Airbus A320-200; Total in Service 34; Seats 180
Engines IAE V2500

The new order against the new MOU begins in 2016 (5 years away) and the spread of the new order is over 9 years (2025)

Interesting extrapolation/financial forecasting is all I can say at this stage.

IndiGo commits to 180 A320s, largest jet order in aviation history
Becomes a launch customer for the A320neo

Here’s the official Airbus URL (not much different in it)
http://www.airbus.com/newsevents/news-events-single/detail/indigo-commits-to-180-a320s-largest-jet-order-in-aviation-history/3103/

WOW, I did not see that one coming at all! That’s a whole lot of planes! Does IndiGo intend to operate all of them, or will the last deliveries be used to replace the first deliveries? Kind a like Ryanair replacing their planes before their first D-chek (?) comes due.

IndiGo commits to 180 A320s, largest jet order in aviation history
Becomes a launch customer for the A320neo

Toulouse, France, January 11, 2011: India’s largest low cost carrier, IndiGo has signed a Memorandum of Understanding for 180 eco-efficient Airbus A320 aircraft of which 150 will be the neo option and 30 will be standard A320s. It is the largest single firm order number for large jets in commercial aviation history, and also makes IndiGo a launch customer for the A320neo. The airplanes are expected to be delivered between 2016 and 2025. Engine selection will be announced by the airline at a later date.

The A320neo, available from 2016, incorporates new more efficient engines and large wing tip devices called Sharklets delivering significant fuel savings of up to 15 percent, which represents savings of over 400,000 USgal of fuel and up to up to 3,600 tonnes of CO2 annually per aircraft. In addition, the A320neo provides a double-digit reduction in NOx emissions and reduced engine noise.

“This order for industry leading fuel efficient aircraft will allow IndiGo to continue to offer low fares” said Rahul Bhatia, Group Managing Director of InterGlobe Enterprises and Rakesh Gangwal, co-founders of IndiGo. “Ordering more A320s was the natural choice to meet India’s growing flying needs. The opportunity to reduce costs and to further improve our environmental performance through the A320neo were key to our decision.”

“The A320 Family is the recognised market leader. The A320neo, offering maximum benefit for minimum change, will ensure that this continues to be the case for many years to come.” said John Leahy, Chief Operating Officer Customers. “This order positions IndiGo to take full advantage of the predicted growth in Indian air travel and we are delighted that they continue to build their future with Airbus.”

Aditya Ghosh, President of IndiGo said, “This order of 180 aircraft reaffirms IndiGo’s commitment to the long-term future of aviation in India. The additional aircraft will enable us to take our low fares and courteous, hassle free service to more customers and destinations and will create more job opportunities and growth for several other aviation related businesses.” Ghosh added, “Our environmentally friendly fleet of the A320neo will set a benchmark by significantly reducing the impact on the environment and lead the way to a more sustainable mode of flying.”

The A320 Family (A318, A319, A320 and A321) is recognized as the benchmark single-aisle aircraft family. Over 6,800 Airbus A320 Family aircraft have been ordered and over 4,500 delivered to more than 310 customers and operators worldwide, making it the world’s best-selling single-aisle aircraft family. With 99.7% reliability and extended servicing periods, the A320 Family has the lowest operating costs of any single aisle aircraft. The A320neo will have over 95% airframe commonality with the standard A320 Family whilst offering up to 500nm (950 km) more range or two tonnes more payload.

Aditya Ghosh said, “We are delighted at extending our long term partnership with Airbus.”