x Abu Dhabi, UAEMonday 24 July 2017

India's IndiGo mulls options to fund record Airbus deal

Indian budget carrier mulls IPO to finance the largest jet order in commercial aviation history.

(FILE) - A file picture shows an IndiGo Airbus A320 aircraft landing at the Indira Gandhi International Airport in New Delhi on June 24, 2010. Indian airline IndiGo has signed an agreement to buy 180 Airbus A320 single-aisle aircraft in a record sale worth $16.4 billion (12.6 billion euros), the European plane maker said on January 11, 2011. AFP PHOTO/RAVEENDRAN
(FILE) - A file picture shows an IndiGo Airbus A320 aircraft landing at the Indira Gandhi International Airport in New Delhi on June 24, 2010. Indian airline IndiGo has signed an agreement to buy 180 Airbus A320 single-aisle aircraft in a record sale worth $16.4 billion (12.6 billion euros), the European plane maker said on January 11, 2011. AFP PHOTO/RAVEENDRAN

MUMBAI // Indian budget carrier IndiGo is considering all options including a possible initial public offering to finance a $15.6 billion deal with Airbus, but has made no decision yet, the firm's president said on Wednesday.

Taking advantage of booming demand from a burgeoning middle class in Asia's third-largest economy, IndiGo on Tuesday agreed to buy 180 planes from Airbus in the largest jet order in commercial aviation history.

IndiGo will get the first delivery of the order in 2015, after it procures all 100 planes from a previous order, Aditya Ghosh told Reuters in an interview.

Ghosh also said IndiGo would start international flights to the Middle East, South-east Asia and South Asia around September of this year, once it completes five years of operation, making it eligible for overseas routes.

Owned by InterGlobe Enterprises and industry veteran Rakesh Gangwal, a former chief executive of U.S. Airways LCC.N, IndiGo is the third-largest Indian domestic carrier by market share.