In a strategic move aimed at bolstering its fleet and expanding its operational footprint, IndiGo, India’s leading airline, has joined forces with BOC Aviation, a Singapore-based aviation leasing firm. The collaboration involves a significant finance lease transaction for 10 Airbus A320NEO aircraft, a development poised to enhance IndiGo’s competitive edge in the aviation industry.
The Power of CFM LEAP-1A Engines
All 10 aircraft included in this landmark deal will be powered by CFM LEAP-1A engines, renowned for their efficiency and performance. This advanced propulsion technology underscores IndiGo’s commitment to ensuring optimal operational capabilities and fuel efficiency.
Scheduled Delivery in 2023
The timeline for this strategic venture is set for 2023, with all 10 Airbus A320NEO aircraft expected to be delivered during this year. This alignment with BOC Aviation’s delivery schedule further reinforces the efficiency and seamless execution of the collaboration.
Strengthening a Long-standing Partnership
BOC Aviation’s Deputy Managing Director and Chief Financial Officer, Steven Townend, expressed enthusiasm about the continued collaboration with IndiGo. He emphasized the significance of deploying alternative financing structures to facilitate the airline’s sustainable growth and fleet expansion using the latest technology aircraft.
A Catalyst for IndiGo’s Expansion Strategy
Riyaz Peer Mohamed, Chief Aircraft Acquisition and Financing Officer at IndiGo, highlighted the partnership’s strategic importance in IndiGo’s expansion strategy across both domestic and global markets. As one of the world’s fastest-growing civil aviation markets, India’s aviation sector’s potential makes these aircraft acquisitions crucial for IndiGo’s position in the region.
BOC Aviation’s Global Reach
BOC Aviation, a global player in the aviation leasing industry, manages a diverse fleet of 652 aircraft owned, managed, and on order. Its extensive global reach, with leases to 91 airlines in 42 countries and regions, underscores its position as a leader in aircraft operating leasing.
InterGlobe Aviation: A Rising Low-Cost Carrier
InterGlobe Aviation, IndiGo’s parent company, has firmly established itself as one of the world’s fastest-growing low-cost carriers. Operating a fleet of over 300 aircraft, the airline’s expansion into international destinations further solidifies its position in the global aviation landscape.
Financial Performance and Growth
InterGlobe Aviation’s financial performance reflects its upward trajectory. With a net profit of Rs 3,090.6 crore for the quarter ending in June 2023, the airline has successfully turned around from a net loss reported in the same quarter the previous year. This achievement is attributed to a surge in domestic travel and favorable fuel prices.
The collaboration between IndiGo and BOC Aviation marks a significant milestone in the aviation industry. As IndiGo gears up to expand its fleet with 10 Airbus A320NEO aircraft powered by CFM LEAP-1A engines, this strategic move is poised to solidify the airline’s market position and drive its sustained growth.
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