Skip to content
Search

Latest Stories

IndiGo places historic order for 300 Airbus planes

INDIAN budget carrier IndiGo has placed an order for 300 Airbus A320neo-family jets worth at least $33 billion (£26bn) at recent catalogue prices, handing the European planemaker what could be its biggest ever order from a single carrier.

The mammoth deal includes Airbus's newest jet, a long-range version of the single-aisle A320neo family called the A321XLR, the country's biggest airline said in a statement on Tuesday (29).


This will take IndiGo's total A320neo family aircraft orders to 730 making it the world's biggest customer for these planes.

"This order is an important milestone, as it reiterates our mission of strengthening air connectivity in India," said Ronojoy Dutta, Chief Executive Officer, IndiGo.

The deal follows a fierce contest between Airbus and Boeing, which is seeking a new endorsement for its competing 737 MAX, grounded following two fatal accidents.

Airbus' A320neo family competes directly with the 737 MAX and the European planemaker has a strong grip on the Indian market.

It came days after IndiGo's biggest quarterly loss, with the company hurt by issues surrounding engines from a former supplier on A320neo-family jets already in the airline's fleet.

In June, IndiGo dropped its original engine supplier, United Technologies unit Pratt & Whitney, in favour of French-US engine venture CFM by agreeing a record $20bn deal for more than 600 engines to power Airbus jets already on order.

CFM is jointly owned by France's Safran and General Electric of the US.

The choice of engine manufacturer for this order will be made at a later date, said Riyaz Peermohamed, IndiGo's chief aircraft acquisition and financing officer.

A new deal for 300 A320neo-family aircraft would be worth $33bn at the most recent list prices, published in 2018, but a deal of this scale would come in well below half that after discounts, according to aircraft valuation experts.

Airbus stopped publishing list prices earlier this year.

Many of the latest batch of aircraft are not expected to be delivered until mid-way through next decade, replacing others only just joining the IndiGo fleet.

The carrier is known for turning over aircraft quickly to keep its average fleet age low, but such a strategy depends on overall strong demand in the jet market.

IndiGo was among the first carriers to buy the re-engined A320neo in early 2011, in what Airbus at the time called a record single deal involving 180 aircraft. It went on to become one of Airbus's largest customers after a series of orders.

Two years ago, an unrelated US private equity company called Indigo Partners placed a blockbuster order for 430 Airbus jets spread between four airlines.

In 1997, US Airways placed an order for up to 400 Airbus A320 jets including options, but many were not delivered.

IndiGo has expanded rapidly to claim almost half the Indian market as rivals such as bankrupt Jet Airways fall by the wayside. Its closest competitor is budget carrier SpiceJet Ltd , a Boeing operator.

However, its two co-founders, Rakesh Gangwal and Rahul Bhatia, have been embroiled in a dispute about corporate governance of the airline that shows no signs of easing.

(Reuters)

More For You

OpenAI Restricts ChatGPT’s Image Feature After Viral Ghibli Trend

Altman addressed the impact of the popular Ghibli-style image trend on OpenAI’s resources

Getty

OpenAI limits ChatGPT’s image generation feature amid viral Ghibli image trend

OpenAI CEO Sam Altman has announced temporary limitations on the company’s image generation feature in response to overwhelming demand driven by a viral trend. On Thursday, Altman addressed the impact of the popular Ghibli-style image trend on OpenAI’s resources, particularly its reliance on GPUs (graphics processing units). Altman revealed that the surge in demand for ChatGPT’s image generation tool has led to significant strain on the company’s infrastructure, prompting the introduction of temporary speed limits for users.

In a post on X (formerly Twitter), Altman shared the company’s response to the unexpected demand, stating, “It’s super fun seeing people love images in ChatGPT, but our GPUs are melting. We are going to temporarily introduce some rate limits while we work on making it more efficient. Hopefully won’t be long! ChatGPT free tier will get 3 generations per day soon.”

Keep ReadingShow less
UK-business-district-Getty
The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)

Economic growth in 2024 slightly higher than estimated: ONS

THE UK economy grew slightly more than first estimated in 2024, according to official data released on Friday, providing a small boost for the government after it revised down its growth forecast for 2025.

The Office for National Statistics (ONS) said gross domestic product expanded by 1.1 per cent in 2024, up from an initial estimate of 0.9 per cent.

Keep ReadingShow less
Sri Lanka posts five per cent GDP growth as it ends years of economic decline

Sri Lanka's president Anura Kumara Dissanayake

Sri Lanka posts five per cent GDP growth as it ends years of economic decline

CASH-STRAPPED Sri Lanka’s economy grew by five per cent in 2024, marking the first full year of expansion since its unprecedented meltdown in 2022, official data showed last Tuesday (18).

The last quarter of 2024 saw the economy expand by 5.4 per cent, bringing the full calendar year’s GDP growth to five per cent, compared to a contraction of 2.3 per cent in 2023.

Keep ReadingShow less
Donald Trump

Speaking from the Oval Office, Trump said, 'What we’re going to be doing is a 25 per cent tariff on all cars that are not made in the US.'

Getty Images

Trump imposes 25 per cent tariffs on foreign-built cars

US president Donald Trump has announced a 25 per cent tariff on imported cars and auto parts, escalating trade tensions with key partners.

The new duties take effect on 3 April and apply to foreign-made cars and light trucks, with additional levies on key auto parts set to follow within the month.

Keep ReadingShow less
Starmer-Trump-Getty

The UK is negotiating a tech-focused trade deal with the US, which could help avoid direct tariff impacts.

Getty Images

UK economy faces pressure from Trump’s tariff threats

THE UK’s economy faces a major risk from US president Donald Trump’s proposed tariffs, the country’s fiscal watchdog warned on Wednesday, citing slow growth and a high debt burden as key vulnerabilities.

Chancellor Rachel Reeves announced cuts to the welfare budget and other spending reductions to meet a key fiscal target aimed at reassuring investors after the 2022 market turmoil under former prime minister Liz Truss.

Keep ReadingShow less