IndiGo is talking to Airbus Group NV (AIR) about an order for 200 additional A320neo jets valued at about $20.6 billion as India’s biggest domestic airline taps rising travel demand, people familiar with the plans said.
The purchase may be announced as early as next week’s Farnborough International Airshow in England, said two of the people, who asked not to be identified because the details are private. While IndiGo has talked with Boeing Co. (BA:US), the airline’s preference is to stick with Airbus, the people said.
Adding more neos, which come with fuel-efficient engines would expand IndiGo’s all-Airbus lineup of 78 aircraft and increase a backlog of 186 undelivered jets from the planemaker’s A320 family. IndiGo uses so-called sale-leasebacks, in which it sells jets to lessors, flies them for six years and then hands them in so the fleet remains fresh.
10/07/14 Anurag Kotoky, Andrea Rothman and Julie Johnsson/Business Week
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The purchase may be announced as early as next week’s Farnborough International Airshow in England, said two of the people, who asked not to be identified because the details are private. While IndiGo has talked with Boeing Co. (BA:US), the airline’s preference is to stick with Airbus, the people said.
Adding more neos, which come with fuel-efficient engines would expand IndiGo’s all-Airbus lineup of 78 aircraft and increase a backlog of 186 undelivered jets from the planemaker’s A320 family. IndiGo uses so-called sale-leasebacks, in which it sells jets to lessors, flies them for six years and then hands them in so the fleet remains fresh.
10/07/14 Anurag Kotoky, Andrea Rothman and Julie Johnsson/Business Week
