TBM Staff - Mumbai IndiGo is setting up an aircraft leasing subsidiary in Gujarat, following a similar move by Air India Ltd as the country’s two biggest carriers enlarge their fleet. The budget airline, which has a market share of 63% in India, also plans to order 10 additional Airbus SE A320neo aircraft, expanding a 300-jet deal inked in 2019, its parent InterGlobe Aviation Ltd said in a stock exchange filing.
Airlines in India are ramping up capacity to capture a boom in passenger traffic in one of the world’s fastest-growing aviation markets. IndiGo also placed a record order with Airbus for 500 aircraft in June, following Air India’s purchase of 470 jets from Airbus and Boeing. Akasa is also finalizing a deal for narrow-body planes. IndiGo will invest as much as INR 30 crore in the wholly-owned leasing unit and provide corporate guarantees of up to $996 million as security against financial obligations.
