Indian tycoon makes record Airbus order, betting on tourism boom

Mr. Bhatia (left) co-founded Indigo in 2006 and is one of India's richest men. Credit: CHRISTOPHE PETIT TESSON/EPA-EFE/Shutterstock

One of India's richest men has staked $50bn (£39bn) on the country's tourism boom over the next decade.

Indigo, co-founded by billionaire aviation magnate Raoul Bhatia, placed a record order for Airbus aircraft on the first day of the Paris Air Show.

The carrier is buying 500 aircraft in the largest single order in the history of the Franco-German aircraft manufacturer.The exact type of aircraft has not yet been determined, but these will be versions of the A320 narrow-body aircraft.

In 2018, the list price of the A320 aircraft started at $100 million each, which means that the total order value will be at least $50 billion.

Mr. Bhatia co-founded Indigo in 2006 with colleague- aviation veteran Rakesh Gangwal in 2006. Indigo thrived in the low-end market even as companies like Air Asia, the carrier founded by Formula One mogul Tony Fernandez, struggled.< /p>

Indigo owns about 55% of the domestic Indian market and claims to be the country's largest airline by market share.

Although the exact aircraft type is still has not been determined, these will be the narrow-body versions of the A320. Credit: SAM PANTHAKY/AFP

Indigo, run by former KLM chief Peter Elbers, will have 1,330 aircraft in service after the entire Airbus order is completed. Final deliveries are expected in the 2030s.

Mr. Elbers said it was “hard to overestimate the importance” of Monday's order. He said: “This order strongly reaffirms Indigo's belief in India's growth.”

India is a key battleground for airlines around the world, and the country's fast-growing middle class is seen as a huge opportunity to drive growth.

Indigo's record order comes from flag carrier Air India, which ordered 470 aircraft from Boeing and Airbus earlier this year to upgrade its fleet.

Airbus Chief Commercial Officer Christian Scherer said Indigo was “democratizing affordable air travel for millions of people.”

Mr Bhatia has become one of India's richest men thanks to Indigo, who is worth an estimated $5.4 billion. In 2019, he fell out with Mr. Gangwal over the management of the company, after which it was listed on the Indian Stock Exchange.

The dispute resulted in Mr. Gangwal leaving the board of directors and agreeing to sell his share. share in the business.