Airbus Nears Record Deal with IndiGo for 500 A320 Jets and Plans 720 Deliveries in 2023

Airbus, the European planemaker, is on the verge of finalizing a groundbreaking agreement to sell 500 A320-family jets to IndiGo, India’s largest carrier, according to industry sources. The official announcement is expected to take place during this year’s Paris Air Show.

If the deal goes through, it will surpass Air India’s historic provisional purchase of 470 jets earlier this year. Valued at approximately $50 billion based on Airbus’ list prices, the actual price will likely be considerably lower due to customary industry discounts for bulk orders.

In addition to the narrow-body jet order, Airbus and Boeing are locked in separate negotiations to sell 25 wide-body A330neo or Boeing 787 aircraft to the same airline. The competition between the two aviation giants further intensifies the stakes in this high-profile deal.

Airbus’s Chief Commercial Officer, Christian Scherer, expressed optimism regarding the company’s recent performance and deliveries, noting a more predictable pattern in its industrial activities. Scherer highlighted the gradual increase in aircraft production and a focus on operational efficiency after facing supply chain disruptions.

According to Reuters, Airbus is on track to deliver over 60 aircraft in May alone, reflecting a substantial year-on-year increase of around 30%. With more than 220 deliveries recorded so far in 2023, the company is targeting a total of 720 deliveries by year-end, signaling a significant ramp-up in production.

Scherer acknowledged that supply chain challenges extend beyond manufacturers and have roots deep within the industry. He attributed these difficulties to the disruptive impact of the pandemic, with an abrupt halt followed by a rapid rebound in demand. However, he expressed confidence that the supply chain is gradually finding its rhythm, resulting in improved harmony.

Airbus and Boeing have faced criticism for delayed deliveries, with airlines and leasing companies citing unpredictable schedule changes. Addressing these concerns, supply chain management is expected to be a key agenda item at the upcoming International Air Transport Association meeting from June 4-6.