Indigo plans to buy 100 small planes to expand regional networks

BNE News Desk

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New Delhi: Indigo is in discussions with aircraft manufacturers ATR, Embraer, and Airbus to purchase around 100 smaller planes to strengthen its presence in the regional routes. While a final decision is yet to be taken, the broad plan is to go for a firm order of 50 planes and the option to buy 50 more such aircraft.

Notably, In April, IndiGo announced an order for 30 A350-900 aircraft and there is also the option to purchase another 70 such aircraft.  Additionally, the airline, which already operates 45, 78-seater ATR-72 planes will take delivery of five more this year. It is expected to stick with Franco-Italian manufacturer ATR to benefit from economies of scale, reports said.

However, Airbus A220 and Embraer's E-175 planes are also being considered. Last year in June, IndiGo placed the largest-ever single aircraft order by any airline for 500 planes with Airbus.

IndiGo, which accounts for 60 percent of India's domestic air traffic market, sees opportunities in smaller cities where airport infrastructure improvements and government initiatives such as Ude Desh ka Aam Nagrik (UDAN) are expected to increase air travel demand.

ATR believes that India will become its largest market over the next decade, reflecting the country's growing regional air connectivity.

Reports stated that the airline now services around 60 locations with a variety of aircraft, including new additions like Gondia, Lakshadweep, Jagdalpur, Jharsuguda, and Dharamshala.

The move also coincides with Civil Aviation Minister Jyotiraditya Scindia's recent declaration of plans to invest Rs 1 trillion to increase the number of airports from 148 to 200 over the next four years.

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BNE News Desk