19^th June, 2023

IBA COMMENTARY – INDIGO ORDER

PARIS AIR SHOW 2023

IndiGo’s order of 500 aircraft has notably eclipsed Air India’s 470 aircraft order made only in February this year (although there was also an option for 70 aircraft). When added to IndiGo’s substantial existing backlog, questions will arise whether the Indian market can accommodate this number of aircraft.

Recent estimates have the market growing at 9% annually, with the Indian government also pledging $12bn to support infrastructure development.

In addition to this, both IndiGo and Air India were running at operating losses until recently, with pricing making it difficult for new entrants to establish market share.

So far in 2023, IndiGo has flown 57.5% of the country’s domestic market capacity. Air India and their future merger partners have only flown 26.6%

A final note is on the make-up of the order. Air India’s February order had marginally more Airbus aircraft (250 to 220 from Boeing). This order is entirely for Airbus.

-ENDS-

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An independent, innovative and forward-thinking business, IBA has over 35 years of heritage and experience in aviation. Having won the Sustainable Technology award for its IBA NetZero platform in 2023 and for its Carbon Emissions Calculator in 2022, and being named ‘Appraiser of the Year’ by their clients for five years, IBA prides itself on its integrity, fierce independence, and continual innovation. 

The key to IBA’s success is its people – some of the best in the industry, based in multiple locations across the globe – real experts who are passionate about aviation and go the extra mile for their clients.

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