India’s largest airline, Indigo, has decided to ground more aircrafts in the fourth quarter due to the ongoing Pratt & Whitney engine problems. The airline is taking a range of mitigating measures to address the issue. First, let’s understand the problem with these engines.
What is the problem with Pratt & Whitney engines?
Pratt & Whitney had in July revealed a rare powder metal defect that could lead to engine component cracking in the twin-engined Airbus A320neo. IndiGo is now taking proactive measures to mitigate the potential disruptions.
The upcoming engine inspections, set to occur between 2023 and 2026, are expected to result in the grounding of numerous Airbus jets. In light of this, IndiGo is strategizing to sustain its growth within India’s thriving aviation market. Pieter Elbers, IndiGo’s CEO, expressed confidence in the company’s ability to meet its financial year 2024 capacity goals despite the grounding challenges.
Indigo’s mitigating measures
To adapt to the situation, IndiGo has taken several significant steps. They have retained 14 of their older Airbus A320ceo aircraft, extended leases on 36 other planes, and initiated the leasing of 11 additional aircraft, starting from November.
Furthermore, beginning in January, the airline is set to lease 12 additional A320ceos from the secondary market. These measures align with IndiGo’s ambition to expand its current fleet of 334 planes by more than the mid-teens this fiscal year and double its size by 2030, as outlined by Gaurav Negi, the Chief Financial Officer of IndiGo.
IndiGo is also in discussions with Pratt & Whitney to seek compensation for the engine-related issues, with the expectation that any payments will be made in staggered installments. Currently, nearly 40 IndiGo planes are grounded due to previous Pratt & Whitney engine concerns, and the airline is still evaluating the extent of groundings resulting from the recent engine problems.
Despite the anticipated higher leasing costs, IndiGo is optimistic that these expenses will be offset by strong demand for air travel. Additionally, the recent bankruptcy of rival airline Go First has led to an overall reduction in air capacity in India, which IndiGo views as an opportunity to meet the challenges and continue its growth trajectory.
(With PTI Inputs)