Indian confirms deal with Airbus for $2.5 billion

Indian confirms deal with Airbus for $2.5 billion

Airbus has confirmed that they have signed on an agreement with state-run Indian Airlines Ltd. for the purchase of 43 Airbus aircraft. The deal is worth around $2.5 billion and has been approved by the Indian government.

The deal was finalized a bit early as French President Jacques Chirac arrived here on an official visit. Indian required these new planes to renew its depleting fleet of airplanes. The Indian aviation market has grown fast in the last couple of years and a lot of new players have entered offering cheap tickets on the domestic routes.

Indian has lost a lot of market to its competitors like the Jet Airways, which recently acquired Air Sahara to become the largest private player in the Indian market. Indian is purchasing 19 A319s, 4 A320s, and 20 A321s as a part of a five-year fleet renewal programme.

Kiran Rao, president of Airbus’ Indian operations said in a statement on their deal with Indian: “We will deliver the first aircraft in October or November, and then one aircraft per month.” These planes would be equipped with CFM-56 engines made jointly by General Electric and Snecma.