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IndiGo shares hit all-time high after placing order for 30 wide-body aircraft from Airbus
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
IndiGo, which has a 60% share in the country’s domestic aviation market, is planning to double its total capacity by the end of the decade and expand its network in global markets.
Shares of InterGlobe Aviation Ltd., the parent of the country’s largest airline IndiGo, gained up to 4% on Friday to hit a record high of ₹3,958.80. This was after IndiGo placed its first-ever order for wide-body aircraft as the company intensifies its efforts to take a bigger slice of the international travel business from dominant Gulf airlines.
The low-cost carrier placed an order for 30 A350-900 aircraft and expects the deliveries to begin in 2027. It also has purchase rights for an additional 70 Airbus A350 family planes, according to a Reuters report.
While Airbus no longer publishes prices, its latest deal with IndiGo’s would be worth more than $9 billion, the report said quoting the last catalogue rates published in 2018. The report also added that airplanes in such bulk deals are sold for less than half of the official price.
“The exact configuration of the aircraft will be decided at a later stage, and the deliveries are expected to start from 2027,” IndiGo said in an exchange filing. The airline also said that it has Purchase Rights for an additional 70 Airbus A350 Family aircraft, at its discretion, for possible future needs under certain conditions.
“Fleet of 30 Airbus A350-900 aircraft will allow IndiGo to embark on its next phase of becoming one of the leading global aviation players. This reaffirms IndiGo’s belief in, and commitment to, the growth of India, and in our strategic partnership with Airbus,” said Pieter Elbers, the chief executive officer of IndiGo.
IndiGo, which has a 60% share in the country’s domestic aviation market, is planning to double its total capacity by the end of the decade and expand its network in global markets.
The stock was trading 3.41% higher at ₹3,942.45 apiece on the NSE. IndiGo shares have risen 32% so far this year and are up 95% in a year.
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