IndiGo likely to ground more aircraft from Q4 of current financial year - CNBCTV18

India's largest airline by market share and fleet size, IndiGo, could see grounding of more aircraft from the fourth quarter of the current financial year. Speaking at the post results analyst call, Gaurav Negi, CFO, IndiGo said, "Received communication from Pratt & Whitney regarding the powder metal issue. As shop floor visits increase, things will become more clear, and this might lead to high number of grounding of aircraft. We will take mitigating measures and lease more aircraft."

Earlier this year Pratt and Whitney informed that around 600-700 engines are likely to get affected as the company detected powder metal contamination that can lead to some engine components cracking.

Negi added that the airline is awaiting the recent bulletin from Pratt and Whitney. "Will not be able to give the total number of affected aircraft right now. It is very difficult to give an exact figure at the moment. Currently around 40 aircraft are grounded due to the old engine issue."

Pieter Elbers, CEO, IndiGo in the concall said, "We have remained completely profitable from the last 4 quarters. 26.3 million passengers flew with us in the past quarter. We're on our way to welcome 100 million passengers the current financial year. We're augmenting the network domestically, focusing on enhancing international strategy. We will further strengthen our own international network, added 6 international destinations till now. We will densify our network by adding two new international destinations including Bali and Medina. Aspire to reach 30% ASKs for international destinations in the coming few years. We will expand codeshare with Qantas."

In September this year, P&W was directed by Directorate General of Civil Aviation to issue Service Bulletin in the next 60 days with the fleet management action plan. The civil aviation regulator took up the matter with Pratt & Whitney on September 1 regarding the three incidents of engine failure with IndiGo & demanded OEM’s urgent intervention.

IndiGo also said that the airline is taking mitigating measures. The company is looking forward to lease more aircraft in the coming few months.

Furthermore, the Revenue from operations for the airlines increased to 19.5% to Rs 14,943 crore.

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IndiGo likely to ground more aircraft from Q4 of current financial year - CNBCTV18
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