Wednesday, August 02, 2017

IndiGo parent reports record profit despite Airbus delays

New Delhi: InterGlobe Aviation, owner of India’s IndiGo airlines, reported a record quarterly profit on Monday powered by growth in passenger revenue but warned that delays in deliveries of Airbus’s new A320neo aircraft were affecting margins.
IndiGo is among several carriers facing delays in receiving planes from Airbus due to problems with new engines supplied by United Technologies’ Pratt & Whitney, which has also forced India’s biggest airline to ground as many as nine planes.

“While we do receive certain compensation from Pratt & Whitney for these groundings, the operational disruptions are quite challenging,” InterGlobe president Aditya Ghosh said during a call with analysts after reporting first-quarter results.
Ghosh said that it may take about a year before Pratt & Whitney makes design changes to solve the problem and it has therefore asked the company to increase the availability of spare engines.
01/08/17 Reuters/Gulf News