Airbus about to sign new contracts
Airbus about to sign new contracts

Airbus declared that it has signed the primary agreement with Indigo which is the Indian budget-carrier for about 180 of the airliners of A320. The airbus has a catalogue value of about $15.6 billion which according to them is the largest order ever for the jetliners with respect to the number of planes and also by value. Airbus which is a unit of the European Aeronautics stated that it expects the contract to get finalized within several weeks. Also major customers would avail discounts on the list price which will be of about 40 percent.

In 2010 at the conference of Indian Aviation which was held in Hyderabad the airbus of the Indigo airlines SAS320 was displayed. Indigo has the distinction of being the country's largest budget carrier, also started of extravagantly making a similar announcement. The Airlines ordered nearly 100 Airbus A320 much before it began its operations. The chief operating officer (for customers) of Airbus said that they have searched previous contracts and details but did not find an order exceeding this. From then on, Indigo has always been a step ahead and has effectively taken advantage of the rising economy of the country and also of the flourishing middle class thus expanding their business quickly. In the recent years India has been among the world's quickest developing airline markets.

As per the data provided by Airbus, at present the Indigo airlines operate about thirty two planes. The co-founders of Indigo airlines, Rahul Bhatia & Rakesh Gangwal, said that with the new order the company will be able to provide passengers low fares as always. The Indigo airlines have always followed the path of expansion whereas their rivals such as Air India, Kingfisher and Jet airways have succumbed to their continuous disruption in finances and staffs.

However, according to some experts, the private company Indigo will be facing stiff competition from various other low-fare carriers such as the Jet Light which is a part of the Jet Airways and Spice Jet Limited. Nowadays with the increasing number of budget carriers there is cut-throat competition in the Discount airfare field.

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