Shares of IndiGo parent, InterGlobe Aviation, were trading higher on Monday amid weakness in the broader market after the airline operator made the largest-ever order of planes by an Indian airline.
What Happened? IndiGo inked a record deal to buy 500 narrow body Airbus A320 aircraft at the Paris Air Show 2023 as it bets big on strong demand for air travel in India over the next decade.
While the deal is worth almost $50 billion (₹4.11 lakh crore) at list price, IndiGo likely received a deep discount given the size of the order, which is also the biggest-ever for Airbus.
The deal outshines Tata Group-owned rival Air India‘s recent order for 470 aircraft from Airbus and Boeing. The fresh deal adds to IndiGo’s order backlog to close to 1,000 planes, which will be continue to be delivered well into the next decade.
The deal comes 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.
IndiGo has been the biggest beneficiary in the aftermath of debt-ridden GoFirst‘s bankruptcy troubles, clocking the largest gains in terms of market share in India's airspace. It now controls more than 60% of air traffic in India
Price Action: InterGlobe Aviation’s shares were up 0.6% at ₹2,447.20 in morning trade, while the Nifty50 was down 0.47%.
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