Indigo have taken delivery 115 aircrafts till date and returned 16 to lessors. The delivery of 180 a/cs ordered has commenced in last Q of 2014. The first bunch of 100CEOs will be progressively replaced by the NEOs and the current order of 250 replace the initial deliveries of NEO.
With longer TBO for the NEOs, 6E
are likely to operate these AF
for 8yrs compared to the 6yrs for the Classics. Additionally, NEOs will have 9 extra seats creating a growth of 5% in ASK, the sum of extra seats and longer lease will allow 6E
to maintain higher capacity whilst keeping a moderate fleet size.
|Quoting EC99 (Reply 31):|
This is an apples to oranges comparison. 150 77X is about 2/3 of EK's current fleet (219 total airplanes). IndiGo has 97 airplanes. 250 A320neos is a 2.5 times their current fleet.
An order representing 2/3 of your total fleet is far different from one representing 5/2.
You missed the 50xA380 and 111xB737 ordered by Dubai during this same airshow. The cumulative list price for all of these orders amounted to $110.4B. The GDP of Dubai in the year 2014 was $107B. As per F&E, the organisers of the Dubai airshow, Aviation accounts for 37% of Dubai's economy. Going by all of these figures I believe there are far greater risks in the regions outside of India rather than India when it comes to Aviation. Since 2001, the ME3 have ordered and taken delivery of phenomenal numbers of aircrafts on the back of $100/bl petro-dollar economy. It will be very challenging for EK
to sell its Sharia bonds to Saudi investors in a $40-$50/bl economy. Not to mention the benign capital markets with near 0% Int rates and massive QE
. Its all unravelling rapidly if one is following the Chinese economy, a good example of supply side growth. The 6E
order confirmation can be viewed in the background of these events, Airbus have placed their faith in the Indian economy/aviation seeing the dust storms in the horizon by closing this deal.
With more fuel efficient and longer range A320NEOs, 6E
will erode much of the feed traffic of the ME3 from India by creating viable city pairs by-passing the hubs of the ME3.
''You are as good as your nearest competitor'' Bob Crandall.