Paris Air Show: IndiGo likely to order 500 new planes from Airbus, sources say

Airbus SE is expected to make a major announcement at the Paris Air Show, with sources indicating that the European planemaker could unveil a groundbreaking agreement with Indian carrier IndiGo for a record-breaking order of 500 A320neo family aircraft on the opening day, Bloomberg reported. 

Insiders familiar with the negotiations have revealed that the proposed order, if finalized, would effectively double IndiGo's existing backlog. While the talks remain private, sources suggest that Airbus and IndiGo are preparing to disclose the agreement as early as Monday. The exact number and details of the deal may still be subject to change as negotiations progress, cautioned the sources.

In addition to the potential IndiGo deal, Airbus is also reportedly working on securing a significant narrowbody order with Saudi carrier Flynas Co. This deal has the potential to become another highlight of the event, alongside the IndiGo agreement, as reported by Bloomberg News earlier. However, it is important to note that negotiations for both transactions are ongoing.

When approached for comment, representatives from Airbus, IndiGo, and Flynas declined to provide any official statements at this time.

Airbus CEO Guillaume Faury expressed his excitement about the Paris Air Show, stating that the event will showcase the industry's return to a time of enthusiasm and growth. Ahead of the show, Airbus has already announced deals for 60 A320 family aircraft and 10 A350s from undisclosed customers, setting a promising pace for the upcoming days of potential orders.

Flynas, which aims to become the leading low-cost airline in the Middle East, previously revealed its desire to increase its order volume to 250 aircraft. The airline currently operates a fleet of around 50 Airbus A320s and has approximately 50 pending orders with the European manufacturer.

IndiGo, already holding a significant backlog of around 500 planes from previous agreements, including a 300-plane order in 2019, is reportedly close to finalizing a record deal with Airbus, as reported by Reuters earlier this month.

Furthermore, IndiGo is also exploring a separate purchase of widebody aircraft, with both Airbus and Boeing Co. competing for a potential order of around 25 aircraft. While negotiations are ongoing, one source suggests that Boeing may have an advantage in securing the deal with its 787 Dreamliner, though the situation remains fluid.

Boeing officials have chosen not to comment on the matter.

If the agreement with IndiGo is realized, it would surpass Air India's recent order of 470 aircraft from both Airbus and Boeing as the former flag carrier seeks to rebuild its operations with a modern fleet under new ownership. With India's aviation market experiencing rapid growth, IndiGo currently holds close to 60% of the domestic flying market share.