Plane maker Airbus has secured its largest ever single order with fast growing Indian domestic carrier IndiGo.
The two parties have firmed up a deal for 250 A320neo family aircraft worth $26.5 billion at list prices.
The landmark deal is also the largest by an Indian airline and follows a previous big money order by IndiGo for 180 A-320neo aircraft in 2011.
"This new order further reaffirms IndiGo’s commitment to the long-term development of affordable air transportation in India and overseas. The additional fuel efficient A320neo aircraft will enable us to continue to bring our low fares and to more customers and markets," said IndiGo president Aditya Ghosh.
The new planes will be delivered from 2018 to 2026, Ghosh said.
Airbus expects the Indian aviation market to grow to the world’s fourth largest and IndiGo is by far the standout performer.
It has almost 40% of the domestic air travel market and more than double its nearest competitors Jet Airways and Air India.
However Ghosh said increasing market share is not the priority.
"All one has to do to increase market share is drop prices but we are not chasing that. We are targeting consistent, profitable growth," he said.
