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    IndiGo aims to reduce cost, offer new overseas destination with its maiden A321neo

    IndiGo aims to reduce cost, offer new overseas destination with its maiden A321neo

    IndiGo aims to reduce cost, offer new overseas destination with its maiden A321neo
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    By Anu Sharma   IST (Updated)

    Mini

    While Pratt & Whitney-manufactured engine has given constant trouble to IndiGo in its A320neos, it remains to be seen whether the A321neos provide more cushion and less pain.

    Low-cost airline IndiGo is all set to receive its first customised A321neo aircraft, becoming the first Indian carrier to use it.
    With the new A321neo having 234 seats, larger than the 186-seater A320neos, the airline aims to reduce cost and offer new overseas destination to its passengers.
    "With larger A321neos, unit costs will further reduce. Same pilot, same engines, so it does not have any complexity but it has a 15 percent lower mile cost because it will have more number of seats than the A320," the management told analysts during a post-earnings conference call.
    The October order book of aircraft maker Airbus revealed that the airline has converted 150 of its A320neo family aircraft into A321, indicating that the airline now wants to expand internationally as A321 gives it an extra hour of flying and also with infrastructure constraints at metros, it would make more sense to fly more passengers in one plane.
    "With existing fleet and the new A321neos, IndiGo will have the capability to reach cities in China, Middle East And South East Asia. IndiGo's A321s will have 234 seats versus 186 on our A320s. So, significantly lower unit cost that will help CASK (cost per available seat km) as well," the management said.
    IndiGo has been one of the biggest clients of Airbus A320neo family with 430 in its orderbook. As per an arrangement with the Airbus, the airline can convert any number of planes to A319 or A321 with appropriate notice.
    With a strong domestic network out of large cities, IndiGo is also likely to instantly get connections to 20 or 30 cities every time it adds one of the international markets.
    While Pratt & Whitney-manufactured engine has given constant trouble to IndiGo in its A320neos, it remains to be seen whether the A321neos provide more cushion and less pain.
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