Wednesday, November 09, 2016

IndiGo to add 18 A320neos by Mar, raise capacity 30%

Mumbai: Low-frills airline IndiGo expects to add 18 aircraft to its present fleet of 118 by the end of this fiscal year, its parent company InterGlobe Aviation revealed in its latest financial results released on Tuesday.

Based on a large fleet, the airline also expects an increase of about 30% in capacity during the next two quarters.

IndiGo, which is the biggest customer for Airbus’s A320neo aircraft had in August slowed down its delivery to allow engine supplier to catch up on the production of upgraded engines.

The airline has placed an order for 430 fuel efficient A320neo aircraft.

A320neo is very important from the airline’s financial performance point of view, as it offers about 15-20% savings on aviation turbine fuel, which makes up for about 50% of the operating cost of the airlines in India.

The engine issues have been hampering the production and efforts are on to correct the engine start-up time.

The engine requires a delay in starting up so that it can reach the right operating temperature.

IndiGo posted a net profit of Rs 139.85 crore in the quarter ended September 30, 2016, a rise of around 24%, mainly aided by higher revenues emanating from growing demand. In comparison, the airline had declared a net profit of Rs 113.13 crore during the corresponding period last year.
09/11/16 Shahkar Abidi/DNA

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