Wednesday, December 04, 2019

IndiGo working on the NEO engine issue, says capacity and revenue could be hit this FY

IndiGo has said that it is working with engine supplier Pratt & Whitney and aircraft manufacturer Airbus to acquire sufficient spare engines and 'mitigate the risk', after industry regulator DGCA asked it to replace engines of its A320Neo aircraft.
The DGCA, in multiple communications, asked the country's largest airline to replace all unmodified engines in the Neo aircraft. The regulator had also asked the airline to ground one aircraft with the unmodified engine, for every addition of a plane with the modified engine.

The DGCA, in multiple communications, asked the country's largest airline to replace all unmodified engines in the Neo aircraft. The regulator had also asked the airline to ground one aircraft with the unmodified engine, for every addition of a plane with the modified engine.

The directive came after multiple incidents of engine snags of the Neo aircraft, raising a security scare. IndiGo has 98 A320 Neo aircraft in its fleet.

Consequently, the engine modification and resultant grounding of aircraft is "likely to have an impact on future capacity," the airline said in a presentation to investors earlier this month.

"Expect a year-on-year (YoY) capacity increase of 15-20 percent in Q4 FY20 and 22-23 percent in FY20," IndiGo added. This capacity growth guidance is against the earlier outlook, in which the airline targetted a 30 percent increase in capacity.
04/12/19 Moneycontrol
To Read the News in full at Source, Click the Headline

0 comments:

Post a Comment