Airbus today celebrated a record-breaking deal with Indian budget carrier Indigo worth $15.6 billion, a welcome boost after a difficult 2010 and proof of the growing power of emerging markets in the aerospace industry.
'It is very good news. This order, it is the equivalent of six months of production, of course spread out over several years. This is considerable,' Airbus Chief Operating Officer Fabrice Bregier said.
Airbus said the deal with IndiGo for 180 A320 aircraft was the largest single firm order for large commercial jets in its history, although it has signed contracts that are worth more financially.
The low-cost airline has signed a memorandum of understanding to acquire 150 single-aisle A320neo jets. The planes are equipped with more efficient engines and fuel-saving wing tips.
IndiGo is the first client for this new version of the aircraft, which Airbus only unveiled last month and plans to start delivering in early 2016. The other 30 planes are to be standard versions of the A320.
The deal is a major shot in the arm for Airbus, which came under intense pressure last year after Australian carrier Qantas grounded its A380 superjumbo fleet following an engine blow-out.
The value of the deal was not announced but is expected to come in lower than the Airbus catalogue price of $15.6 billion (€12 billion). 'That is a guideline price and does not take into account eventual reductions for bulk purchases,' a source close to the deal said.
IndiGo, India's largest budget carrier by market-share, said it was not immediately sure how it would finance the deal and it had not decided whether it would conduct an initial public offering of shares. Deliveries of the aircraft will not start until 2016.
Airbus said it has delivered some 4,500 of the A320 aircraft in its various forms to 310 airlines, with another 1,300 on the order books, making it the world's best-selling single-aisle aircraft family.
The A320neo is Airbus' bid to counter rival aircraft such as Canada's Bombardier CSeries and China's C919, as well as heading off US rival Boeing, which has not yet decided on the future of its medium-haul 737 workhorse.
