Airbus Plans Over 1,200 Deliveries to IndiGo and Air India

Airbus’s Expanding Commitments to IndiGo and Air India

Airbus has designated IndiGo and Air India as two of its three largest global customers by aircraft delivery backlog, underscoring the rapid growth of India’s aviation sector. The European aerospace giant is scheduled to deliver 916 aircraft to IndiGo and 344 to Air India, primarily narrow-body models from the A320 family. These substantial orders reflect the ambitious fleet expansion strategies of both carriers, with IndiGo established as India’s largest low-cost airline and Air India, now privatised and merged with Vistara, serving as the national flag carrier.

At the International Air Transport Association Annual General Meeting in Delhi, Benoit de Saint-Exupery, Airbus Executive Vice President for Sales and Commercial Aircraft, revealed these figures. The Malaysia-based AirAsia Group holds the second position globally with 393 aircraft pending delivery, placing IndiGo first and Air India third in the global backlog rankings. This hierarchy highlights India’s emergence as a critical market for aircraft manufacturers amid the ongoing recovery of the global aviation industry.

Production Recovery and Strategic Sourcing in India

Airbus has made notable strides in restoring its production capabilities following the disruptions caused by the COVID-19 pandemic and global supply chain challenges. The company has returned A320 family production to pre-pandemic levels, currently manufacturing 60 single-aisle aircraft per month, with plans to increase this rate to 75 monthly by 2027. Saint-Exupery noted that supply chain stability is gradually improving, a development welcomed by airlines worldwide that have faced mounting frustration over delivery delays from both Airbus and Boeing.

India’s significance extends beyond being a key customer market to becoming an increasingly strategic hub within Airbus’s industrial operations. The company already operates final assembly lines for H125 helicopters and C295 military aircraft in the country. While the establishment of a final assembly line for commercial aircraft in India remains under consideration, Airbus is prioritising the expansion of its sourcing operations. Procurement from Indian suppliers has surged from $500 million in 2020 to $1.4 billion in 2024, surpassing the $1 billion mark in 2023.

Airbus aims to double its annual sourcing from India to $2 billion before the end of the decade, reflecting a commitment to leverage India’s manufacturing capabilities and cost advantages. Remi Maillard, President of Airbus India and Managing Director for South Asia, emphasised India’s transformation from a mere market into a strategic industrial base. The company plans to integrate Indian-made components into every commercial aircraft it produces, aligning with India’s Make in India initiative and supporting the growth of the domestic aerospace manufacturing sector.

Navigating Future Challenges with Cautious Optimism

Despite encouraging progress in stabilising its supply chain and ramping up production, Airbus remains cautiously optimistic about sustaining this momentum. Saint-Exupery acknowledged the volatile nature of the current global environment, which demands continuous vigilance and adaptability from aerospace manufacturers. Persistent delivery delays experienced by both Airbus and Boeing have posed significant operational challenges for airlines, potentially influencing future fleet strategies and reshaping market dynamics in the years ahead.