French manufacturer Airbus is on the verge of finalising a deal to sell 500 narrow-body A320-family jets to IndiGo, India’s largest airline.
What Happened? The European planemaker has emerged as the frontrunner for an order by IndiGo that would eclipse a historic provisional purchase of 470 jets by Tata Group’s Air India in February, sources told Reuters at an airline industry meeting in Istanbul.
In addition to the narrowbody jets, Airbus and Boeing are competing to sell 25 wide-body jets to the Indian airline market leader, the sources told the publication.
At Airbus’ most recent list prices, the order of 500 narrow-body jets could be estimated to be around $50 billion (₹4.13 lakh crore), though it is likely that IndiGo will receive some discount on the massive purchase.
Reports around the deal come at a time when IndiGo is set to embark on a massive international expansion, adding six new destinations in Africa and Central Asia to its network.
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IndiGo and the Tata Group’s Air India have emerged as the clear winners in the battle for India’s airspace after debt-ridden GoFirst filed went into bankruptcy protection last month and SpiceJet has been facing its own battles with creditors and grounded planes.
Price Action: Shares of InterGlobe Aviation were up 0.2% at ₹2,390.30 when markets opened on Monday.
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