Page 23 - AAA JULY - AUGUST 2015 Online Magazine

FEATURE INDIGO

“This new order further reaffirms the fleet size to 137. “From fiscal 2016, Currently all aircraft possessed by
IndiGo’s commitment to the long- all A320neo family aircraft deliveries IndiGo carry the V-2527-A5 variant of the
term development of affordable air will be made under our 2011 purchase V2500 SelectOne engine manufactured by
transportation in India and overseas,” agreement with Airbus,” he adds. IAE, and, upon delivery, all of the A320neo
says Aditya Ghosh, President of IndiGo. Current Composition of Fleet aircraft in its 2011 order will utilize Pratt
A Memorandum of Understanding As of April 30, 2015, IndiGo’s fleet consisted & Whitney engines.
(MoU) for 250 aircraft at a list price of $25.7 of 96 Airbus A320 aircraft. All the 100 A320 The airline has a young fleet, with an
billion was signed last October. However, aircraft ordered from Airbus in June 2005 average age of 3.26 years as of April 30,
in its draft red herring prospectus filed were delivered by November 3, 2014, two 2015. In order to maintain a young fleet,
with the Securities and Exchange Board of years ahead of the initially scheduled the airline has entered into short-term
India in June this year, the airline had said final delivery date. The airline additionally operating leases with terms generally
the MoU had lapsed. placed a firm order with Airbus for 180 ranging from three to six years.
Elucidating the delivery and return A320neo aircraft in June 2011. Also, to meet expansion needs, it has
schedules of the airline’s aircraft and “We believe that the magnitude of our extended the operating leases of 24 of
expected fleet size through fiscal 2018, the 2005 and 2011 aircraft orders helped us its current aircraft as of March 31, 2015,
official says this year the airline will add to negotiate favourable terms with Airbus seven of which had been scheduled to be
17 aircraft, including the final seven A320s and our other aircraft-related suppliers redelivered to its lessors in fiscal 2015.
under a 2005 purchase agreement and 10 and service providers, which provides
A320s under a 2014 lease of aircraft. us with a structural cost advantage by Delivery Schedule
In 2016 also the airline “anticipate” to reducing the overall costs associated “We have also leased 12 aircraft previously
include 17 more aircraft and take its fleet with the acquisition, maintenance and leased by Tiger Airways with an average
size to 111. This includes the final two A320s operation of our aircraft,” says the official. age of 2.5 years on short term leases
under a 2014 lease of 12 aircraft previously The airline says it is also entitled to of 3.5 to four years. In addition to these
leased by Tiger Airways, both of which have receive certain incentives from engine and 12 aircraft, we expect to add another six
been delivered, anticipated six additional component providers, which are granted previously used aircraft before March
used aircraft and nine A320neos under its at the time of delivery of each aircraft 2016,” the official says.
2011 purchase agreement with Airbus. and upon the achievement of certain Airbus has delivered 100 aircraft to
“Fleet figures and delivery and milestones. “We have the option to apply IndiGo from the commencement of its
return schedules are subject to potential these incentives towards credit for any operations in 2006, 84 of which remain
advancements and deferrals of aircraft payments due to the engine manufacturers in its fleet as of April 30, 2015. Of the
deliveries and the terms of our leases or to receive these incentives in cash from 100 aircraft delivered by Airbus, as of
with various third-party lessors,” the the engine manufacturers at the time of November 3, 2014, 77 were on operating
official indicates. aircraft delivery. Historically, we have leases, 17 were on European Export
The airline expects to take delivery of received these incentives substantially in Credit Agency backed finance leases, five
12 aircraft in 2017 and 14 in 2018 taking the form of cash,” the official says. were on IAE-backed finance leases and
one was purchased with internal funds.
Of its fleet of 96 aircraft as of April 30,
2015, 22 are on finance leases and 74 are
on operating leases, including 12 aircraft
on short-term operating leases which
were previously leased by Tiger Airways.
The purchase agreement for our 2011
order has secured a series of scheduled
deliveries from November 2015 to
November 2023, subject to any delivery
advancements or deferrals which may
be negotiated with Airbus. “We are not
scheduled to receive any further deliveries
from Airbus until the first A320neo under
our 2011 order with Airbus is delivered to
us in this November.
“We expect these deliveries to increase
our operating fleet to approximately
111 aircraft, net of retirements, by the
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