IndiGo: In the first hour of trading on Tuesday, shares of InterGlobe Aviation, the parent company of IndiGo, reached a 52-week high of 2,490. The news comes a day after IndiGo, the largest airline in India by market share, placed an order with Airbus for 500 planes. The deal between IndiGo and rival Air India earlier this year, in which 470 aircraft from Airbus and Boeing were ordered, was larger than IndiGo’s order. Brokerages predict that IndiGo’s record deal will eventually increase the share price of its parent company. InterGlobe Aviation’s fleet management, according to ICICI Securities, has been its “absolute bedrock” in creating a successful, economical airline operation.
IndiGo’s Record Airbus Order Strengthens InterGlobe Aviation’s Stock Performance
InterGlobe Aviation stock has performed well this year, rising by about 20% since January. InterGlobe Aviation’s shares, meanwhile, have increased by about 58% during the past year. “This has been further strengthened by IndiGo’s latest order of 500 Airbus A320 family aircraft,” ICICI Securities wrote in the note. The order made IndiGo the biggest A320 family customer in the world. “This new order will provide IndiGo and Airbus’ strategic partnership a new level of depth and breadth. With this latest deal, IndiGo has placed a staggering total of 1,330 aircraft orders with Airbus since its founding in 2006, the airline stated in a statement. These new aircraft are expected to be delivered to the airline between 2030 and 2035.
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IndiGo’s Massive Airbus Order Sets the Stage for Fleet Expansion and Market Domination
The deal’s overall worth is estimated to exceed $50 billion. It should be emphasised that the new order would give IndiGo a significant boost in terms of its fleet and market share. Indicating that IndiGo’s order book has around 1,000 aircraft, the airline had already made a prior order for 480 aircraft. The airline now has little over 300 aircraft in service, and it has a mix of A320neo, A321neo, and A321XLR aircraft on order.
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