New Delhi: The low-cost carrier IndiGo has signed a memorandum of understanding to buy 250 A320neo-family jets from Airbus, a deal the European plane-maker said would be its single largest order by number of aircraft.
IndiGo has previously placed orders for 100 A320s and 180 A320neo planes.
The company, whose fortunes contrast with other carriers struggling in an Indian market that faces severe overcapacity, is expected to list its shares early next year with an initial public offering that could be worth up to $400 million, three people involved in the deal have said.
The airline, which competes with SpiceJet Ltd and GoAir in the Indian market, operates 83 A320 aircraft and placed orders in 2011 for 180 more, largely for the upgraded re-engined A320neo variants, with deliveries expected to begin early next year. The airline has also inked a deal to take 12 A320s from Singapore's Tiger Airways on lease.
These aircraft will allow IndiGo to retire its older aircraft and keep the average age of its fleet to around six years, helping to keep operating costs down.
