Airbus is expected to make a major announcement at the Paris Air Show, with reports suggesting it could be the announcement of a record-breaking order of 500 aircraft from Indian airline IndiGo. The order, if approved, would double the airline’s existing backlog and is for aircraft in the A320neo family, according to insiders who are familiar with the negotiations. The deal could be announced as early as the first day of the event, according to the sources.
The European manufacturer is also understood to be in talks with Saudi Arabia’s Flynas Co. for a large narrowbody order, which could be another key deal of the event. The number of aircraft and final details of each transaction are still being negotiated and could change. Representatives from Airbus, IndiGo and Flynas declined to comment when approached by reporters.
Airbus CEO Guillaume Faury has already expressed his confidence that the event will signal “back to the good old times of excitement.” The announcement of 60 A320 family aircraft and 10 A350s to undisclosed customers prior to the event hints that he may be onto something.
Flynas reportedly aims to increase its orders to 250 aircraft, with the intention of becoming one of the leading low-cost carriers in the Middle East. Currently, the company has a fleet of around 50 aircraft, mostly made up of A320s manufactured by Airbus, and it has around 50 orders pending with the company.
IndiGo already has a backlog of around 500 planes thanks to previous agreements, including a 300-plane order last year. In the past month, reports have surfaced that the carrier was close to agreeing to a significant deal with Airbus. It is also understood that the airline is working on a separate purchase of widebody aircraft, with both Airbus and Boeing vying for a deal of around 25 aircraft. Whilst Boeing is rumoured to have the upper hand with its 787 Dreamliner, negotiations are still ongoing and a deal has not yet been confirmed.
If confirmed, a deal struck by IndiGo would surpass a recent agreement made by Air India to procure 470 planes from Airbus and Boeing, as part of a fleet rebuild following new ownership. With India’s aviation market enjoying significant growth, controls close to 60% of domestic flights.