Airbus wins $6bn order from India

India's skies are filling up with new private airlines

Fledgling Indian budget airline IndiGo has ordered 100 A320 jets from Airbus, the European planemaker said.

Although Airbus did not reveal the agreed price, the catalogue value of the planes is $6bn (£3.29bn).

IndiGo is not yet flying. Airbus said the new airline has "high-quality executives" and was sure to be "a successful new player".

Airbus also received orders for 20 A320s from Brazil's TAM and a further 10 from Mexico's ABC Aerolineas.

TAM also signed a non-binding commitment for 10 of the group's A350 planes which it hopes to launch later this year.

But, Indian airlines have emerged as big buyers at this year's Paris Air Show placing orders worth roughly $12bn.

India's strong economic growth has boosted the market for internal travel - both business and leisure - and the budget airline business model is catching on rapidly there.

New battleground

Industry analysts believe the India's aviation market is poised for 20% annual growth as private airlines multiply.

BOEING v AIRBUS ORDERS Qatar Airways - 20 Boeing 777s worth $4.6bn Qatar Airways - up to 60 Airbus A350s worth $10.6bn ILF - 20 Boeing planes, including next generation 737, in $2.9bn deal Kingfisher - to buy "multiple" Airbus aircraft in a deal worth $2.5bn Jet Airways - 20 Boeing planes worth more than $2.8bn Jet Airways - 10 Airbus A330s for $1.5bn GECAS - 20 next generation Boeing 737s worth $1.1bn GECAS - 10 Airbus A350s worth $1.6bn ALAFCO -12 Airbus A350s worth $2.5bn IndiGo - 100 Airbus A320s in $6bn deal TAM - 20 A320s and eight A350s ABC Aerolineas - 10 Airbus A320s Boeing fights back

Both Airbus and rival US planemaker Boeing have benefited from big Indian orders at the Paris Air Show.

Boeing won an order from Jet Airways for at least 20 planes with a catalogue value of $2.8bn, made up of 737-800s and 777s.

Kingfisher, another low-cost carrier backed by beer magnate Vijay Mallya, ordered 15 aircraft worth up to $3bn from Airbus.

IndiGo is being backed by travel company InterGlobe Enterprises, and by entrepreneur Rakesh Gangwal, who was president and chief executive of US Airways until 2001.

"IndiGo is the result of extensive analysis and planning by very experienced airline executives and we're convinced it will be a successful new player," said Airbus chief executive Noel Forgeard.