IndiGo mulls purchase of about 30 Airbus SE A350s to expand international reach: Report

IndiGo widebody jets: Interglobe Aviation Ltd or IndiGo, India's largest airline by passenger traffic, is reportedly contemplating the acquisition of widebody aircraft, news agency Bloomberg News reported, quoting sources familiar with the matter. This strategic move aims to enhance the airline's international capabilities and intensify competition with Air India Ltd.

The airline is currently evaluating various options, and according to the report, an order for approximately 30 Airbus SE A350s is emerging as the favoured choice. However, the decision is still pending and subject to potential changes in timing and the number of planes.

IndiGo has long mulled over the prospect of introducing long-haul services to cater to the increasing demand from affluent Indian travellers venturing to destinations like the UK and Europe. While the low-cost carrier presently operates two Boeing Co. 777s leased from Turkish Airlines for flights to Istanbul, its fleet predominantly consists of single-aisle jets from Airbus.

Notably, IndiGo holds a significant position as one of Airbus's largest customers, following a monumental order for 500 A320neo family aircraft placed last year. With a backlog of around 1,000 aircraft, the airline has solidified its commitment to expanding its fleet.

Established in 2005, IndiGo has rapidly grown to operate over 2,000 flights daily, serving 118 destinations. In 2023, the airline achieved the remarkable milestone of transporting over 100 million passengers annually, a figure it aims to double by the end of the decade.

However, venturing into long-haul operations poses inherent risks for budget airlines. Past endeavours by carriers such as Norwegian Air Shuttle ASA, AirAsia X, and WOW Air have encountered challenges in making the business model financially viable.

IndiGo shares ended 2.41 per cent higher at Rs 3,291 apiece on the NSE on Thursday, March 21, 2024.