India’s largest Carrier Indigo Airlines’ parent company Interglobe Aviation Limited’s share surged up by 4% on Friday, reaching a record high of INR 3958.80. The boost came following Indigo’s announcement of its first-ever order for wide-body aircraft, signalling a strategic move to capture a larger portion of the international travel market, particularly competing with dominant Gulf Airlines.
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Expansion Plans Take Off
IndiGo, known for its low-cost carrier model, has placed an order for 30 Airbus A350-900 aircraft, with deliveries expected to begin in 2027. Additionally, the airline has secured purchase rights for an additional 70 aircraft from the Airbus A350 family. Although specific pricing details were not disclosed, the deal is estimated to be worth more than USD 9 billion based on catalogue rates from 2018.
Strategic Growth Vision
The Indigo reaffirmed its commitment towards the development saying the exact aircraft configuration will be determined later. Indigo CEO Peter Albers stressed the significance of this milestone in the company’s path in the aviation industry. Indigo, which has a dominant share of 60% in India’s domestic aviation market, aims to double its total capacity by the end of the decade, as well as expand its footprint in international markets.
Investor Confidence Soars
Investor sentiment responded positively to IndiGo’s expansion plans, with the company’s stock trading 3.41% higher at INR 3,942.45 per share on the National Stock Exchange (NSE). Year-to-date (YTD), IndiGo shares have surged by 32%, demonstrating robust investor confidence in the airline’s growth strategy.
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Clear Skies Ahead
In a stock exchange filing, IndiGo reaffirmed its commitment towards the development, saying the exact aircraft configuration will be determined later. IndiGo CEO Peter Albers emphasized the importance of this milestone in the company’s path and described it as an important step towards becoming a major global player in the aviation industry.
