Airbus Triumphs Over Boeing in India, Takes $26 Billion Order for 250 New Jets
Airline IndiGo has signed a memorandum of understanding with Airbus for a firm order of 250 A320neo planes.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
IndiGo, the largest domestic airline in India measured by market share, has signed a memorandum of understanding with Airbus for a firm order of 250 of the aircraft maker’s new A320neo. At list prices, the order is worth about $26 billion.
The A320neo (new engine option) is Airbus’s re-engined version of its A320, a single-aisle, narrow-body passenger jet that is a direct competitor to Boeing Co.’s (NYSE: BA) venerable 737 and its new 737 MAX. This is the second large order announcement for Airbus since last Friday, when a Chinese aircraft leasing firm ordered 70 of the current model A320ceo (current engine option) in a deal worth about $7 billion at list prices.
IndiGo already owns a fleet of 83 A320-200s and had a clear preference for adding more Airbus planes to its fleet. The airline has previously placed orders with Airbus for a total of 180 A320neo and 100 A320ceo jets.
The airline is lining up a $400 million initial public offering, according to a report from Bloomberg News, and Wednesday’s announcement strengthens the airline’s public perception as a company that will be in business for a long time. IndiGo’s goal is to build a fleet of 1,000 jets to accommodate the expected growth in India’s domestic demand for air travel.
Airbus stock was trading down about 2% in Paris Wednesday morning, at €45.00 in a 52-week range of €41.61 to €57.33.
Boeing stock closed up 1.53% on Tuesday, at $122.29, and was inactive Wednesday morning. The stock’s 52-week range is $117.87 to $144.57.
ALSO READ: Boeing’s 20-Year Forecast Tops Airbus
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
