Will use new Airbus planes for domestic, intl biz: IndiGo

Written By Unknown on Rabu, 15 Oktober 2014 | 21.03

IndiGo president Aditya Ghosh says the company-appointed merchant bankers- Citi, JP Morgan, Morgan Stanley, Barclays, Kotak, UBS- are yet to give any clear call on the possibility of an initial public offering (IPO).

In a move to boost its domestic and international business, no-frill carrier IndiGo today signed an MoU to acquire 250 of the latest Airbus A-320 neo aircraft at the price of USD 25.5 billion and the aircrafts will be delivered in 2018, says president Aditya Ghosh.

In an interview to CNBC-TV18, Ghosh says the company's fleet will be bolstered by 430 over the next 12 years.

The company's new order comes on the back of its previous orders of 100 A-320s in 2005 and another 180 A-320 neos in 2011 worth about USD 11 billion, which was the largest-ever at that time.

On the company's listing plans, Ghosh says the company-appointed merchant bankers- Citi, JP Morgan, Morgan Stanley, Barclays, Kotak, UBS- are yet to give any clear call on the possibility of an initial public offering (IPO).

Below is the edited transcript of the interview to CNBC-TV18.

Q: Do you want to tell us how much Indigo is paying for this order. The list price is USD 102 million but you guys always get discounts. How easy was it for you to negotiate given this is also a time when airlines around the world are bleeding?

A: Well all these deals are valued at the list price. So let's stick with that but hopefully we get a better deal than the list price.

Q: But normally all of you are able to negotiate a discount. We are talking about 250 Airbus A320 Neo aircraft I am sure you have got a discount. Else it works out to be about USD 25.5 billion?

A: That is correct, that is the deal value. It is about USD 25 billion.

Q: By when will you start getting delivery of all of these aircraft?

A: We would get these from 2018 and these are over and above the 180 airplanes that will start getting delivered from October next year. So, with both those orders put together we have another 430 more airplanes to come.


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