IndiGo, Asia's largest budget carrier, is reportedly considering the acquisition of widebody aircraft, citing sources privy to the development news agency Bloomberg reported. This strategic move aims to bolster the airline's international presence, intensifying competition notably with Air India Ltd.
Sources, requesting anonymity, revealed that IndiGo is contemplating various options. Among them, an order for about 30 Airbus SE A350s appears to be the frontrunner. However, they cautioned that the airline might still revise its decision regarding the timing and quantity of aircraft.
The airline has long entertained the idea of venturing into long-haul services to cater to the increasing number of affluent Indian travelers exploring destinations like the UK and Europe. Currently, IndiGo operates two Boeing Co. 777s, leased from Turkish Airlines for flights to Istanbul, while predominantly relying on Airbus single-aisle jets for its fleet.
Notably, IndiGo stands as one of Airbus's significant clients, following a monumental order of 500 A320neo family aircraft last year, resulting in a backlog of nearly 1,000 aircraft.
Both IndiGo and Airbus declined Bloomberg’s request for comment on the matter.
Established in 2005, IndiGo operates a vast network of over 2,000 flights daily, serving 118 destinations. In 2023, it joined the elite club of airlines transporting over 100 million passengers annually, aiming to double this figure by the decade's end.
While expanding into long-haul operations holds promise, it also entails risks for budget carriers. Historical challenges faced by airlines like Norwegian Air Shuttle ASA, AirAsia X, and WOW Air underscore the complexities of sustaining profitability in this segment.
Meanwhile, in August last year, BOC Aviation Limited, a company based in Singapore, and IndiGo had finalised a finance lease deal encompassing 10 Airbus A320NEO aircraft. This agreement aims to bolster IndiGo's fleet expansion efforts. As per the report, BOC Aviation disclosed that all 10 aircraft, equipped with CFM LEAP-1A engines, are slated for delivery in 2023.