Friday, November 17, 2017

Indigo beats IndiGo in aircraft deal

Dubai: One Indigo moved out while another etched its name in the record books as the multi-billion dollar market for aircraft came to life on the penultimate day of the Dubai Air Show on Wednesday.

India's budget carrier IndiGo, recently in the news for wrong reasons when its ground staff grappled with a hapless passenger on the tarmac, on Wednesday got wrestled out of the prestige fight in aviation deals by America's Indigo Partners.

IndiGo, which had flaunted the biggest purchase order from Airbus with a deal to buy 250 A320neos in August 2015, had to cede its pride of place to Indigo Partners, which had signed for 430 planes from Airbus for $49.5 billion, in the European company's biggest deal ever. IndiGo and Indigo Partners are separate firms with separate management. The deal includes 273 A320neos and 157 A321neos.

Meanwhile, Boeing on Wednesday reached an agreement with low-cost carrier FlyDubai to sell 225 Boeing 737 MAX10s for $27 billion.

In Indigo Partners, the airlines to use the aircraft will include Frontier Airlines, JetSMART of Chile, Volaris of Mexico and Wizz Air of Hungary. The A320neos list for $108.4 million apiece and A321neos at $127 million. Airlines and manufacturers often negotiate lower prices for big deals such as these.

Indigo Partners is a Phoenix-based private equity firm. It owns Denver-based Frontier Airlines and owns part of Mexico's Volaris. It's managed by William Franke, a pioneer of the cheap tickets and high fees airline business that has spread overseas and is growing in the US.
17/11/17 Telegraph