Civil Aviation Minister Jyotiraditya Scindia on Tuesday said budget airline IndiGo’s order of 500 aircraft with Airbus “sets another milestone” and will have a multiplier effect in the sector.
The multi-plane deal announced by Europe’s Airbus on the opening day of the Paris Airshow on Monday is the largest aircraft deal in history, eclipsing Air India’s provisional purchase of 470 jets earlier this year – with 250 Airbus and 220 with Boeing of America.
The country’s two largest carriers are planning a rapid expansion in regional travel demand.
“Not only for the stakeholders in the civil aviation sector, but also for the 1.4 billion people in our country who are more and more inclined to travel by air… This transaction – very close to the Air India order – marks another milestone Scindia said on Tuesday, with the largest order ever placed by the carrier with any aircraft manufacturer.
He said that it is important to understand the multiplier effects of civil aviation and also the direct and indirect economic multiplier effects. “Every dollar invested in civil aviation generates $3.1 in new growth as well as an employment multiplier. Every direct job in civil aviation results in 6.1 indirect jobs in the sector. And hence, reap tremendous dividends from the ever-growing civil aviation sector,” Scindia said.
He said the airline sector is on the rise – from a fleet size of 400 in 2014 to 700 in 2023.
“We have seen a 75 per cent increase in fleet size… We have seen the birth of multiple nationwide carriers, regional carriers, and have also seen orders placed by India’s leading carriers which will make up the total fleet size of India in 2013-14. are more than,” the minister said.
500 narrowbody A320 family aircraft will be delivered between 2030 and 2035.
According to a June 1 report by Barclays, Indian carriers now have the second largest order book, accounting for more than 6 per cent of the industry backlog, behind only the United States.
But some analysts have expressed concern that airlines may place more orders for jets in search of the same passengers. reuters informed of,
IndiGo has about 60 percent of the domestic market, and continues to hold separate talks with Airbus and rival Boeing for 25 widebody planes, which could be Airbus A330neos or Boeing 787 jets, sources told Reuters.