Indian budget airline IndiGo has agreed to buy 250 Airbus A320 short-haul aircraft in the largest ever purchase by an Indian carrier and also the biggest sale for the European aviation giant.
The deal would be worth $25.7 billion at list prices, although airlines typically get a discount and the memorandum of understanding between the two must still be confirmed as firm orders.
The deal comes in the wake of a slew of reports that IndiGo - India's largest airline - was close to placing a large order worth billions of dollars for a variety of aircraft as it looks to expand in one of the world's fastest growing aviation markets.
IndiGo has a fleet of 83 Airbus A320s and has ordered or taken delivery of 280 Airbus aircraft, including 160 of the upgraded A320 neo model that will begin arriving next year.
It was one of the first customers for the A320 neo.
The provisional deal extends Airbus's lead over Boeing in the Indian market and could, if confirmed in coming months, close a worldwide deficit in orders versus its U.S. rival during the first nine months of the year.
Indigo may also buy smaller regional planes and widebody long-haul jets, in addition to the narrowbody A320s, industry sources told Reuters on Tuesday.