IndiGo Announces Major Engine Deal With CFM For Airbus A320neos

IndiGo has announced a massive new deal with engine-marker CFM this week. The low-cost giant will exclusively use CFM LEAP-1A engines for 310 upcoming Airbus A320neos, A321neos, and A321XLRs. The deal will cover servicing and engines for A320neo family aircraft delivered after 2023.

IndiGo A321neo
CFM will supply engines for a bulk of IndiGo’s order of A320neo family jets in the future. Photo: Airbus

Huge

IndiGo has announced a long-rumored order for engines for its upcoming Airbus aircraft. The carrier will purchase 620 LEAP-1As from CFM along with spare engines and a long-term service agreement. The order covers 310 aircraft from IndiGo’s massive order over 700 A320neo family aircraft.

Notably, this latest deal is in addition to IndiGo’s 2019 order which saw it order engines for 280 of its jets. In total, the carrier will now receive 580 A320neos equipped with LEAP-1A’s, of which 22 have already been delivered.

IndiGo's routes
After years of issues with Pratt & Whitney engines, IndiGo seems to be making a near-full switch to CFM. Photo: Getty Images

While the deal’s value has not been revealed, the figure will certainly be the single largest engine order in history. For context, IndiGo’s 2019 order was valued at $20 billion and had already set the record. Considering this deal includes more engines than the last, we are looking at a figure far north of $20 billion.

In a statement about the record-setting deal, IndiGo CEO Ronojoy Dutta said,

“This is a pivotal milestone that reflects our long-standing commitment to rapidly strengthen our network both domestically and internationally. This expansion will serve as a catalyst to boost India’s economic growth and the mobility of its people…We are here to deliver on our promise of providing low fares and a courteous, hassle free experience to all our customers.”

Optimistic

Despite Indian airlines losing millions and struggling during the second wave, IndiGo remains optimistic about the outlook of the industry. This engine deal underscores the carrier’s long-term vision and fleet growth plans.

This deal will also power IndiGo’s first Airbus A321XLR, which is scheduled to be delivered in 2023. While the airline remains tight-lipped about its plans with this gamechanging narrowbody long-range jet, we can expect several new international routes once the plane arrives.

IndiGo A321XLR
The CFM LEAP-1A requires no modifications to be added to the A321XLR. Photo: Airbus

IndiGo currently has around 700 aircraft on order with Airbus, all of which are a mix of A320neos, A321neos, and the A321XLR. Notably, while other major airlines have been deferring deliveries, IndiGo took the most aircraft in the world last year.

Challenges to tackle

However, before any aviation recovery begins, IndiGo must deal with the fallout of the second wave of COVID-19 in India. The carrier is raising $409 million through selling equity shares, a move it avoided last year. However, with passenger numbers plummeting once again, the airline must raise capital.

For now, IndiGo is navigating this latest crisis with an eye on the future as well. However, with vaccines slowly rolling out, a full recovery could be just two years away, putting the low-cost giant in the lead at that time.

What do you think about IndiGo’s most recent aircraft order? Let us know in the comments!



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