The largest airline in the Indian airline industry, IndiGo, has entered into a deal to purchase 500 aircraft, valuing $50 billion, from the Europe-based manufacturer named Airbus at the Paris Air Show. This deal will help the airline to smoothly expand its airline business for more than 10 years by consistently supplying planes.Â
Share Price got Interglobe Aviation:
The highest share price was recorded today on BSE for Interglobe Aviation at Rs. 2,499.95 apiece and a gain of more than 2% was also recorded on early trade today; along with the news report that Indigo which is the largest airline in India has entered into a contract with Airbus SE which is a Europe based aircraft manufacturer for purchase of 500 aircraft, whose value is estimated to be $50 billion, at the Paris Air Show.
Today, the shares of Interglobe Aviation opened at an increased rate of 2.8% at an intraday high price of Rs. 2,499.95 per piece on BSE and recorded an intraday low price of Rs. 2440 per piece. The share price of IndiGo was recorded to close, on Monday, at a 0.11% increase rate of Rs. 2,432.70.
As per one Equity Technical and Derivative Analyst named Rajesh Bhosale, the stock opened with a higher gap, but the gains have been lost. He further stated that any dip in the share price should be treated as an opportunity to purchase wherein 2400 is in favour and 2580 is in resistance.
According to Gaurav Bissa, VP of InCred Equities, the stock experienced a breakthrough from a symmetrical triangle formation on the weekly charts at 2,150 levels, propelling it towards 2400 levels. After setting new lifetime highs, the stock initiated a reversal pattern known as a bearish harmonic alt shark pattern on the weekly charts.
If the stock falls below 2,350 levels, the pattern predicts a fall to 2,150 levels. With a multiyear rising trend line resistance at 2,550 levels, the stock is currently trading above its key swing high levels, maintaining purchasing interest in the stock. Because of the negative harmonic pattern, present shareholders should book a portion of their profits at the current levels because the risk-reward ratio does not favour new purchases.
With the help of this deal, the airline will be provided with a consistent supply of aircraft for its expansion for the next 10 years, by the A320NEO family.Â
Currently, the market share of Indigo in the domestic market is more than 60% and it has already planned the delivery of around five hundred aircraft.
Remarks of Pieter Elbers, CEO of IndiGo:
The IndiGo chief executive officer, Pieter Elbers, has said that they have placed an order as per what they think is necessary for the airline and that this deal will help IndiGo to increase its international as well as domestic business.
He further added that the importance of the airline’s recent, historical purchase of 500 Airbus A320 Family aircraft cannot be overstated. With almost 1.000 aircraft on order, the airline can continue to support India’s economic growth, social cohesion, and accessibility well into the next decade. They were proud to be one of the top airlines in the world and India’s preferred airline for connectivity both within and outside of the country. This purchase reinforces the airline’s commitment to the A320 Family, India’s development, and their strategic alliance with Airbus.
As stated in a press release from IndiGo, the agreement would provide a steady supply of aircraft between 2030 and 2035. The 1,000 aircraft in IndiGo’s order book are divided among the A320NEO, A321NEO, and A321XLR models.
This new purchase will give IndiGo and Airbus’ strategic collaboration an unmatched level of deepness and broadness, as per the company’s exchange filing. With this most recent purchase, the airline will have ordered 1,330 aircraft from Airbus in total since its establishment in 2006.
