India’s low cost carrier Indigo has signed a deal with Industrial and Commercial Bank of China Ltd (ICBC) worth $2.6 billion for financing 30 new aircrafts.Chinese President Xi Jinping has arrived in India and both the countries are expected to do deals with billions of Dollars.
Indigo will be using this money for getting more Airbus Aircrafts.Indigo has got the largest market share in India.The President of Indigo Mr Aditya Gosh announced it today. Indigo is considering a IPO (Initial Public Offer) next year in Bombay Stock Exchange.
Most of the aircraft are with sale and lease back agreements. Under Sale and Lease back agreement, a third party owns the aircraft and than rents it to the airline.
The load factor of Indigo is presently on number two ,just behind Spicejet (Report for August Month). Indigo has registered highest on time performance of 88.7 ,whereas Air India has got the least with just 74.
All the airlines of India are in deep losses and are looking at FDI for getting the financial support. Indigo is the only airline which posts consistent profits. Indigo is facing the heat of competition from Air Asia and Spice Jet.
During last month Indigo has carried 18.59 Lakhs passengers and registered highest market share of 32.6% in India. There are presently eight airlines which are flying in India. Air Asia has got the least market share with just 0.6% .