3 ms·

Paris air show takes off with biggest ever plane order

23 points by pg_1234 3y ago

1024core 3y ago
Airlines from India have accounted for 2 of the biggest aircraft orders ever, in the last 6 months. First Air India with 480, and now IndiGo with 500. I guess a lot of pent-up demand exists.
- umeshunni 3y ago
  If you look at it as seats delivered, the 480 plane order from Air India is actually much larger since they're ordering wide-bodies, while the IndiGo order seems to be entirely narrow bodies. Air India: 190 737 Max aircraft, 20 of Boeing’s 787s, and 10 of its 777Xs. Customer options for an additional 50 737 Maxs and 20 of its 787s. 40 wide-body A350 Airbus aircraft and another 210 narrow-body A320neo planes. IndiGo: 500 A320s (likely the A320neo)
umeshunni 3y ago
> The aircraft will be delivered between 2030 and 2035. That's some serious long term ordering. Given the general turbulence in the aviation industry over the last decade, I'm wondering how likely it is that all of these will be delivered.
- JimtheCoder 3y ago
  I could be wrong, but I think they can probably make the initial orders now and sell the production slots to someone else down the line if necessary? Don't aircraft manufacturers secure a bunch of order commitments before production so they can get financing for their manufacturing operations? I don't know the details, but I think it is a lot more complex then just "placing orders to buy airplanes"
  - politelemon 3y ago
    Yes normally there is a letter of intent which is simply agreement on price and terms and expiry date, which the media interprets as firm orders. There will still be a bunch of negotiation happening afterwards and and eventually a purchase agreement. There's still more after that but LOI is considered a starting point to say "I'm serious"
- gumby 3y ago
  I wonder if the order was actually with the airline or with a leasing company (or finance arm of the airline)? Large orders like that usually come from aircraft leasing companies (many airlines don't own all their own aircraft)

23 points by pg_1234 3y ago

Airlines from India have accounted for 2 of the biggest aircraft orders ever, in the last 6 months. First Air India with 480, and now IndiGo with 500. I guess a lot of pent-up demand exists.

umeshunni 3y ago
If you look at it as seats delivered, the 480 plane order from Air India is actually much larger since they're ordering wide-bodies, while the IndiGo order seems to be entirely narrow bodies. Air India: 190 737 Max aircraft, 20 of Boeing’s 787s, and 10 of its 777Xs. Customer options for an additional 50 737 Maxs and 20 of its 787s. 40 wide-body A350 Airbus aircraft and another 210 narrow-body A320neo planes. IndiGo: 500 A320s (likely the A320neo)

umeshunni 3y ago

> The aircraft will be delivered between 2030 and 2035. That's some serious long term ordering. Given the general turbulence in the aviation industry over the last decade, I'm wondering how likely it is that all of these will be delivered.

JimtheCoder 3y ago
I could be wrong, but I think they can probably make the initial orders now and sell the production slots to someone else down the line if necessary? Don't aircraft manufacturers secure a bunch of order commitments before production so they can get financing for their manufacturing operations? I don't know the details, but I think it is a lot more complex then just "placing orders to buy airplanes"
- politelemon 3y ago
  Yes normally there is a letter of intent which is simply agreement on price and terms and expiry date, which the media interprets as firm orders. There will still be a bunch of negotiation happening afterwards and and eventually a purchase agreement. There's still more after that but LOI is considered a starting point to say "I'm serious"
gumby 3y ago
I wonder if the order was actually with the airline or with a leasing company (or finance arm of the airline)? Large orders like that usually come from aircraft leasing companies (many airlines don't own all their own aircraft)