The country's largest domestic carrier, IndiGo, will induct six new ATR aircraft into its fleet by the end of third quarter.
InterGlobe Aviation-owned IndiGo, which will use lease and sale back (SLB )mechanism to finance the deal, will take the delivery of aircraft from Canadian leasing company Chorus Aviation Inc. during the second and third quarter of the current fiscal year, Chorus Aviation said in a statement.
"We are delighted to welcome IndiGo, as our 14 th lease customer," said Steve Ridolfi, President, Chorus Aviation Capital, adding, "The Indian aviation market is vibrant and dynamic with regional air transportation expanding rapidly to connect previously unserved communities. IndiGo is perfectly positioned to capitalize on this exciting growth."
SLB allows the owner of an aircraft to sell the asset and then take it back on lease from the leasing company. Such deals remove the aircraft, and its associated debt, from the balance sheet of an airline.
IndiGo, the country’s largest airline by market share, flew 15.7 million domestic passengers during the March quarter compared to 13.4 million in the year earlier.
The airline currently has 232 aircraft in its fleet including 82 new generation Airbus 82 A320 Neos, 128 A320 Ceos, 17 ATRs and 5 A321 Neos, according to its web site.
IndiGo uses its ATR fleet to connect regional routes within the country.
On Monday, InterGlobe Aviation’s shares rose 1.13% to ₹1673.25 on BSE, outperforming the benchmark Sensex that fell 0.04% to 39,741.36 points. The results were announced after market hours.