IndiGo, India’s largest airline by market share, has entered into a finance lease transaction with BOC Aviation, a leading global aircraft operating leasing company, for four Airbus A320NEO aircraft. The deal is part of IndiGo’s expansion strategy and fleet modernization efforts, as it aims to provide affordable, on-time, and hassle-free travel across its extensive network.
The benefits of the deal
The aircraft are all powered by CFM LEAP-1A engines, which offer significant fuel savings and lower emissions compared to previous generation engines. All four aircraft are scheduled for delivery in 2024. The partnership with BOC Aviation will help IndiGo strengthen its position in both domestic and international markets, as it faces increasing competition from other low-cost carriers.
According to a report by CAPA India, IndiGo had a domestic market share of 54.3% and an international market share of 11.8% as of December 2023. It also had the highest load factor of 86.9% among Indian carriers in the same month. The report stated that IndiGo’s fleet expansion plans will enable it to capture more market share and increase its network density and connectivity.
The views of the partners
IndiGo’s Chief Aircraft Acquisition and Financing Officer Riyaz Peermohamed said, “We are pleased to announce that we have extended our partnership with BOC Aviation through a lease agreement for four Airbus A320NEO aircraft. These aircraft will be instrumental in supporting our expansion plans and strengthening our position in both domestic and international markets. At IndiGo, we are dedicated to providing our customers with unparalleled travel experiences, and this partnership will allow us to continue delivering affordable, on-time, and hassle-free travel across our extensive 6E network.”
BOC Aviation’s Chief Executive Officer and Managing Director Steven Townend said, “We are pleased to be closing another four finance leases with IndiGo. We continue to work closely with our long-time customer to support its expansion strategy as it builds a fleet of latest technology fuel-efficient aircraft. This is our first transaction in the year of the dragon, and it sets the tone for the year as we continue growing our fleet by investing in latest generation aircraft and partnering with high quality customers.”
IndiGo fleet profile
IndiGo operates a fleet of over 340 aircraft, including 150 Airbus A320NEO aircraft. It serves 86 domestic destinations and 32 international destinations, with more than 2000 daily flights. It is known for its low fares, punctuality, and customer service.
The Airbus A320NEO is a narrow-body jetliner that can seat up to 186 passengers in a single-class configuration. It has a range of up to 6,300 km and a maximum take-off weight of 79 tonnes. It features new generation engines and sharklets that reduce fuel consumption by up to 15% and noise emissions by up to 50% compared to the previous model.
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