Tuesday, October 31, 2017

India's IndiGo says profit helped by Pratt, Airbus payouts

InterGlobe Aviation, the owner of India`s biggest airline IndiGo, reported a rise in quarterly profit, helped by compensation received from Pratt & Whitney and Airbus on aircraft groundings and delivery delays.

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 forced the airline to ground as many as nine planes.

The carrier has started receiving spare engines and now has no A320neo planes on the ground, InterGlobe President Aditya Ghosh said in a call with analysts after first quarter results.

Ghosh said he still expected it to take another 12 to 15 months before Pratt & Whitney resolved their issues and until then the airline would focus on getting spare engines.

InterGlobe warned in July that delays in deliveries of Airbus` A320neo aircraft were affecting margins, adding it was having to lease planes to make up the shortfall.
The payment from Pratt & Whitney and Airbus includes compensation for lost revenue due to grounding planes and reimbursement of operational expenses due to aircraft delivery delays.
31/10/17 ZeeBiz