IndiGo to lease six Airbus A320s

Mumbai: In a move geared towards achieving targeted growth as well as offset losses against lower ATF prices, IndiGo, India’s largest budget carrier, is expanding its fleet by leasing six Airbus A320s this year. The first addition, according to the company’s president Aditya Ghosh, is likely next month.
However, Mr Ghosh declined to give details on the investment required for taking the aircraft on lease. IndiGo, which begun operations three years ago with one Airbus, run a fleet of 19 aircraft. It had placed orders for 100 Airbus planes in the Paris air show in 2005.
The addition of aircraft is in line with the company’s plan to expand operations across the country. It has announced plans to fly to 30 destinations in a year. It now runs 120 flights daily to 17 destinations.
“The proposed expansion, coupled with the tumbling crude and ATF prices, will help the loss-making airline to break even faster,” said Daljeet Kohli, head of research at Emkay Global. According to American aircraft manufacturer Boeing’s estimates, India will need 1,001 new aircraft worth $105 billion in the next two decades, as economic growth will boost demand for air travel in Asia’s third-biggest economy.
With crude oil prices touching the lowest in eight months at $45 per barrel, budget airlines are back in business and increasing capacities and reducing fares in a bid to increase passenger load.
16/01/09 Mithun Roy/Economic Times

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Categories: Indigo Airlines Jan 2009