Fast growing Indian low cost carrier Indigo has agreed a deal to buy 250 A320 planes from Airbus, which will represent a record order for the European plane maker.
It is a purchase worth almost $26 billion at list price and the carrier will start taking delivery of the planes from 2018.
It is a statement of intent from Indigo, India’s only profitable carrier as it looks to take more market share in a country where passenger numbers are forecast to grow by an extra 75% in the coming years.
"We believe India is a highly underpenetrated market," said Indigo president Aditya Ghosh.
"Some of these new planes will go to replacement. It’s difficult to say how many at the moment, but a lot will be for growth."
In less than a decade since its inception, Indigo has risen to claim over 30% of the domestic market, according to data from the Indian Aviation Authority.
While most rivals operate at a loss, Indigo’s past business model has been to sell and lease back its planes to keep a handle on costs and lift profits.
