The Facts
As the Paris Air Show kicked off Monday, Airbus announced an agreement with Indian airline IndiGo, which will see them sell 500 aircrafts — the largest number ever in a single deal — in a multibillion-dollar agreement for the single-aisle airplanes.
The deal surpasses Air India's purchase of 470 aircrafts from Airbus and Boeing in a deal made earlier this year, illustrating India’s emergence as one of the world’s top buyers in the aviation market.
The Spin
Narrative A
India is already one of the globe’s largest aviation markets and is still growing rapidly. The country’s post-pandemic growth has been exponential and, not only has its population become the largest worldwide, but its economy is seeing the rise of a robust middle class that can sustain industry expansion, such as in aviation. While it may take some time, India is on its way to being one of the largest players in the global aviation market.
Narrative B
While New Delhi's aviation market is experiencing a boom, there are a number of challenges facing the nation’s airlines and economy that may still limit growth. India is currently experiencing the world’s largest demand for aircrafts because it has the largest global population, but some Indian airlines are still going out of business. Supply chain issues have been brutal, and India's per capita penetration is far lower than other countries. While the raw totals look good, the nation still has a lot of ground to make up for to sustain a healthy aviation industry.
