IndiGo's Order For Wide-Body Airbus Planes Signals Growth For Indian Aviation, Crisil Says
IndiGo expects to take delivery of the A350-900 planes from 2027.
Budget carrier IndiGo's decision to acquire wide-body planes augurs well for the Indian aviation industry as international long-haul routes are comparatively more profitable and will also help in creating an aviation hub in the country, according to rating agency CRISIL.
Till January last year, IndiGo operated single-aisle Airbus aircraft fleet and in February 2023, it started operating wide-body Boeing 777 wet-leased from its codeshare partner Turkish Airlines. Currently, the airline has two wet-leased B777 operating flights to Istanbul from Delhi and Mumbai.
On Thursday, the country's largest airline announced placing a firm order for 30 wide-body Airbus A350-900 planes, to be powered by Rolls-Royce's Trent XWB engines, and also has the option to purchase 70 more such aircraft.
'The development (IndiGo's A350 aircraft order) augurs well for the industry as these (international long haul) routes are comparatively more profitable and open up avenues for innovative combinations as Indian carriers have good domestic connectivity as well,' Jagannarayan Padmanabhan, Senior Director & Global Head, Transport, Mobility and Logistics - Consulting at CRISIL Market Intelligence and Analytics, said on Friday.
Among the Indian carriers, currently, only Air India and Vistara have wide-body aircraft in their fleets. IndiGo and SpiceJet have wet-leased some wide-body planes.
Padmanabhan said the share of Indian airlines in international traffic originating and terminating in India has grown steadily in recent years to around 43%. Air India and IndiGo have, therefore, made this a strategic area for growth, he added.
'The latest order of IndiGo for long-haul flights is to be seen in that context. It had become imperative for the carrier to diversify its fleet - especially of wide-body aircraft - to maintain its competitive edge in long-distance routes and attract both leisure and business travellers,' Padmanabhan said.
According to him, the order will also help India strengthen its case for creating an aviation hub in one of the major airports.
IndiGo expects to take delivery of the A350-900 planes from 2027.