Indian IndiGo orders 100 Airbus jets
Thu Jun 16, 2005
PARIS (Reuters) - IndiGo, a new Indian budget airline, handed Airbus an order worth $6 billion at list prices for single-aisle aircraft on Thursday, bringing to $13 billion the value of Indian deals at the Paris Air Show.
The surprise order for 100 jets in the A320 family comes on top of a major Airbus order announced by Kingfisher Airlines, an offshoot of the group which makes Kingfisher beer, and a split order from Jet Airways for both Airbus planes and Boeings.
Travel group InterGlobe Enterprises Limited plans to launch IndiGo as a low-cost venture, entering the market in force with a nationwide network and a full fleet of jets, Airbus said.
"We see dramatic growth in the Indian market. It was artificially protected in the past but there are many new carriers now," said Airbus Chief Commercial Officer John Leahy.
"India is starting a rapid economic expansion and we think air travel will be part of that," he told reporters, adding that air travel tends to grow at twice the rate of GDP.
IndiGo's backing includes an investment from a seasoned airline executive, former U.S. Airways chief Rakesh Gangwal, Leahy said.
Gangwal, who has also held positions at United Airlines and Air France, is now Chairman and CEO of reservations service Worldspan Technologies.
Deliveries of IndiGo's planes will start late in 2006.
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