Mumbai: Days after turning nine, IndiGo, India’s largest airline by market share, has announced an order to buy 250 narrow-bodied A320 neo aircraft for $25.7 billion. In an interview with Aneesh Phadnis, IndiGo President Aditya Ghosh talks about the mega aircraft deal, the company’s coming initial public offering (IPO) and other plans. Edited excerpts:
Earlier, IndiGo had signed a memorandum of understanding (MoU) with Airbus for 250 A320neo planes. Why did you allow the MoU to lapse? Is Monday’s order according to the same terms?
It is according to the same terms. The MoU lapsed because we were unable to sign the purchase agreement within the stipulated period but we were always in discussions with Airbus.
There is a perception that you signed this order to boost investor sentiment ahead of the IPO. The draft red herring prospectus had revealed the MoU had lapsed and investors could have seen this as a negative.
We have finalised the order, which will be received through the next decade. The 100 planes we ordered in 2005 have been delivered and the deliveries of 180 planes ordered in 2011 will begin later this year. Monday’s order will chart our growth in the next decade. Very few well-run businesses would make such large commitments on the basis of what would happen over the next two-three months. It would be incorrect to say we announced the order to boost investor sentiment.
17/08/15 Aneesh Phadnis/Business Standard
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Earlier, IndiGo had signed a memorandum of understanding (MoU) with Airbus for 250 A320neo planes. Why did you allow the MoU to lapse? Is Monday’s order according to the same terms?
It is according to the same terms. The MoU lapsed because we were unable to sign the purchase agreement within the stipulated period but we were always in discussions with Airbus.
There is a perception that you signed this order to boost investor sentiment ahead of the IPO. The draft red herring prospectus had revealed the MoU had lapsed and investors could have seen this as a negative.
We have finalised the order, which will be received through the next decade. The 100 planes we ordered in 2005 have been delivered and the deliveries of 180 planes ordered in 2011 will begin later this year. Monday’s order will chart our growth in the next decade. Very few well-run businesses would make such large commitments on the basis of what would happen over the next two-three months. It would be incorrect to say we announced the order to boost investor sentiment.
17/08/15 Aneesh Phadnis/Business Standard
