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Showing posts from October, 2019

IndiGo's ENORMOUS aircraft order

IndiGo just announced they've placed an order of 300 jets with Airbus. Yes, you read that right, 300! Such orders are not very out of character as far as IndiGo is concerned. They have placed 3 such large orders in the past. One for 180 aircraft, another one for 250 and the latest one for 300! People might think this is mildly insane, but there's a method to their madness. These huge orders are availed at massive discounts by the airline. Also, IndiGo stands to make a ton of money by following the sale and leaseback model. In the SLB model, the airlines sells the aircraft that they have bought to a lessor, subsequently leasing the same planes from them. This boosts the balance sheet of the airline while reducing the debt on the books. INFOGRAPHIC ABOUT THE SLB MODEL (COURTESY REED SMITH LLP) All the 300 jets are from the A320 family, with the A320NEO, A321NEO and the much exalted A321XLR populating the massive order. While the A320NEO and the A321NEO are common by now, w