Updated April 30th, 2024 at 20:12 IST

IndiGo CEO outlines ambitious plans for A350s, fleet expansion

Addressing queries regarding financing, Elbers affirmed that IndiGo would explore various modalities, leveraging its successful history in aircraft financing.

Reported by: Business Desk
Elbers stressed that the decision to acquire 30 wide-body planes was meticulously considered | Image:PTI/File
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IndiGo, the country’s leading airline, recently announced the purchase of 30 A350-900 wide-body aircraft with an option for an additional 70 planes. CEO Pieter Elbers expressed the airline's intent to explore various financing options for the A350s, highlighting the plethora of opportunities these aircraft would unlock for IndiGo.

During discussions surrounding the wide-body aircraft order, Elbers underlined IndiGo's commitment to cost leadership and outlined plans to double its fleet size by 2030. Currently operating around 350 narrow-body planes, the airline envisions having approximately 600 narrow-body aircraft in operation by the end of the decade.

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Elbers stressed that the decision to acquire 30 wide-body planes was meticulously considered, aiming for a balance between significance and prudence. He noted that while the move would have a meaningful impact on the airline's operations, it was also essential to avoid potential challenges.

With deliveries of the A350-900 slated to commence in 2027, IndiGo is set to strengthen its presence in key cities like Delhi, Mumbai, Bengaluru, and Hyderabad. Elbers highlighted the aircraft's capabilities, which offer a wide array of opportunities for network expansion and increased connectivity.

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Addressing queries regarding financing, Elbers affirmed that IndiGo would explore various modalities, leveraging its successful history in aircraft financing. Notably, the majority of IndiGo's fleet has been acquired through sale and leaseback arrangements, a model that may also be considered for the A350s.

Elbers highlighted the potential synergies between narrow-body and wide-body operations, given that both aircraft types belong to the Airbus family. Leveraging these synergies would contribute to maintaining cost efficiency across the fleet.

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The A350-900 planes will feature Rolls Royce's Trent XWB engine, with specific configurations to be finalized later. The strategic acquisition aligns with IndiGo's overarching goal of doubling in size by 2030, driven by expansion into domestic and international markets.

Last year, IndiGo made headlines with the largest-ever single aircraft order by any airline, securing 500 aircraft from Airbus. The airline's outstanding order book includes a mix of A320neo, A321neo, and A321 XLR aircraft, signalling its commitment to sustained growth and market leadership.

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(With PTI inputs)
 

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Published April 30th, 2024 at 20:12 IST