IndiGo commits to 180 A320s, largest jet order in aviation history

Becomes a launch customer for the A320neo

India's largest low-cost carrier, IndiGo has signed a Memorandum of Understanding for 180 eco-efficient Airbus A320 aircraft of which 150 will be A320neo’s and 30 will be A320s. It is the largest single firm order number for large jets in commercial aviation history, and also makes IndiGo a launch customer for the A320neo. Engine selection will be announced by the airline at a later date.

The A320neo, available from 2016, incorporates new more efficient engines and large wing tip devices called Sharklets delivering significant fuel savings of up to 15 percent, which represents up to 3,600 tonnes of CO2 annually per aircraft. In addition, the A320neo provides a double-digit reduction in NOx emissions and reduced engine noise.

“This order for industry leading fuel efficient aircraft will allow IndiGo to continue to offer low fares,” said Rakesh Gangwal and Rahul Bhatia, co-founders of IndiGo. “Ordering more A320s was the natural choice to meet India’s growing flying needs. The opportunity to reduce costs and to further improve our environmental performance through the A320neo were key to our decision.”

“The A320 Family is the recognised market leader. The A320neo, offering maximum benefit for minimum change, will ensure that this continues to be the case for many years to come,” said John Leahy, Chief Operating Officer Customers.  “This order positions IndiGo to take full advantage of the predicted growth in Indian air travel and we are delighted that they continue to build their future with Airbus.”

The A320 Family (A318, A319, A320 and A321) is recognised as the benchmark single-aisle aircraft family. Some 6,800 Airbus A320 Family aircraft have been ordered and some 4,500 delivered to more than 310 customers and operators worldwide, making it the world’s best-selling single-aisle aircraft family.  With 99.7% reliability and extended servicing periods, the A320 Family has the lowest operating costs of any single aisle aircraft. The A320neo will have over 95% airframe commonality with the A320 Family whilst offering up to 500nm (950 km) more range or two tonnes more payload.

IndiGo’s potential A320neo order heats up engine competition

Engine selection by Indian carrier IndiGo for its potential A320neo order is under heavy scrutiny as it could usher in one of the first competitive campaigns for the CFM Leap X and Pratt & Whitney's PW1100G geared turbofan.

Airbus has unveiled a memorandum of understanding with IndiGo covering 150 of the new A320neo variant and 30 basic A320 models.

Key to the A320neo's estimated 15% in fuel savings is the two engine types Airbus has selected for the aircraft. The CFM Leap X features a two-stage high-pressure turbine driving a 10-stage high pressure compressor, and low-pressure turbine blades produced using ceramic matrix composite. Its bypass ratio should be around 10 compared with 5-6 for the current CFM56 family.

P&W's geared architecture on the 1100G allows the front fan to spin three times slower than the core, which the manufacturer says optimizes the speed of each section of the engine. P&W believes the PW1100G should produce a 15% to 20% improvement in fuel burn.

Flighglobal's ACAS database shows that IndiGo currently operates 33 Airbus A320s powered by IAE V2500s, which are also scheduled to power the 62 firm A320s the airline has order.

With no direct allegiance to either CFM or P&W, Indigo's engine selection for the A320neo is difficult to predict. P&W is a joint venture partner in the V2500's manufacturer IAE along with Rolls-Royce, MTU and Japanese Aero Engine Corporation.

IndiGo was mentioned on a list of potential A320neo customers by Airbus chief operating officer for customers John Leahy in December 2010. In May of 2010 ATI reported that IndiGo was seeking government approval to acquire 150 aircraft for its expansion plan.

Other potential customers interested in the A320neo mentioned by Leahy are Lufthansa, AirAsia, Qatar Airways and lessors International Lease Finance Corporation and GECAS.

Airbus has previously said the A320neo's list price would be around $6 million higher than existing models to support modifications to the airframe and for the addition of 'sharklet' wingtips. The 2010 list price for an A320 was $81.4 million.