After Indigo, Air India has signed a lease agreement for operating lease of 14 A320 neo aircraft at the Hyderabad airshow in India.

Air India will induct A320 neo operators from 2017. With this agreement the airline will benefit with 15 per cent fuel burn reduction, reduced noise and environmental footprint, while offering its passengers the best in class comfort.

Air India already operates 66 A320 family aircraft including 22 A319, 24 A320 and 20 A321. It was the first airline in India to operate A320s which was 27 years ago.

On the other hand, IndiGo’s first A320 neo has made an appearance on the opening day of the India Aviation air show in Hyderabad. The aircraft was shown in front of Indian Government officials, IndiGo and Airbus executives as well as air show crowds. The aircraft was delivered on March 11 after a direct flight from Toulouse to Delhi International airport lasting over eight hours (8hrs and 12 mins).

The A320neo 'new engine option' incorporates many innovations, including latest generation engines and large Sharklet wing-tip devices, which together deliver 15 percent in fuel savings from day one and 20 per cent by 2020. This is equivalent to a reduction of 5,000 tonnes of CO2 per aircraft per year. So far Airbus has won orders for over 4,500 A320neo aircraft.

GoAir, which is mulling to hit capital market by this fiscal, had in June 2011, placed order for 72 new A320s, valued at about Rs 32,400 crore on list price, with Airbus.

GoAir’s wait to induct the A320neo aircraft in its fleet may get a little longer as European plane maker Airbus has made it known that it may not be able to deliver the new fuel-efficient aircraft as scheduled from early April next year, airline sources have said.

Airbus is scheduled to commence delivery of these planes to the Wadia group-promted budget airline from the next fiscal.