You are here: Home » Companies » News
Business Standard

IndiGo to take 12 Airbus A320s on lease from Tigerair

Currently, IndiGo has 81 Airbus A320 planes and the airline operates some 500 flights daily

Aneesh Phadnis  |  Mumbai 

No frills airline IndiGo, which reported it sixth annual profiit in fiscal 2014, will take on lease 12 A320 planes from to support its expansion plan.

Currently, has 81 A320 planes and the airline operates some 500 flights daily. Between December 2012 and now it has added 15 aircraft.

In 2005, placed an order for 100 A320s followed by another order for 180 planes (150 A320neos and 30 A320s) in 2011. This is the first time that is taking planes on sub lease from another airline

Growing competition in domestic market with the revamp of Jet Airways and entry of two new domestic -AirAsia and Vistara (still to commence operations) has led IndiGo to aggresively expand its fleet.

Singapore-based announced today it has reached an agreement with IndiGo for subleasing of its 12 planes.

The airline said the 12 planes will be progressively delivered to IndiGo over a period of six months commencing October 2014. Each aircraft will be subleased for between three and four years at a discount to the original lease rates, said.

Most of these aircraft were previously operated by Tigerair Philippines and Tigerair Mandala and had been returned to the group upon its divestment of Tigerair Philippines in March 2014 and Tigerair Mandala’s cessation of operations in July 2014.

Last month IndiGo signed a Memorandum of Understanding (MoU) with Industrial and Commercial Bank of China Ltd (ICBC) for financing of 30 Airbus planes valued $ 2.6 billion. The airline did not disclose when it will complete induction of the 30 planes.

First Published: Thu, October 09 2014. 19:14 IST