STOCK MARKET BSE NSE

IndiGo says PW engine issue is likely to have an impact on future capacity

On November 1, aviation regulator DGCA had asked IndiGo to replace all unmodified PW engines on its 97 A320neo family aircraft or face grounding of planes.

Published: 04th December 2019 09:29 PM  |   Last Updated: 04th December 2019 09:29 PM   |  A+A-

IndiGo

IndiGo flight (Photo | EPS)

By PTI

NEW DELHI: With DGCA ordering IndiGo to replace all A320neo aircraft with unmodified Pratt and Whitney (PW) engines by January 31, the airline on Wednesday designated this matter as one of the "revenue headwinds" of 2019-20, and said it is "likely to have an impact on future capacity".

On November 1, aviation regulator Directorate General of Civil Aviation (DGCA) had asked IndiGo to replace all unmodified PW engines on its 97 A320neo family aircraft or face grounding of planes.

Later, unsatisfied with IndiGo's speed in replacing the unmodified PW engines, the regulator on November 25 instructed it to ground an old A320neo family aircraft with an unmodified PW engine for every new A320neo plane added to its fleet to prevent large-scale cancellation of flights from January 31 onwards.

On Wednesday, in its presentation to investors and analysts, the airline said that PW engine issues is "likely to have an impact on future capacity".

It said it is expecting a capacity increase of 15-20 per cent in fourth quarter of 2019-20.

ALSO READ | PW engine on IndiGo's A320neo aircraft suffers snag on Chennai-Hyderabad route

The airline added that the overall capacity increase would be 22-23 per cent in 2019-20.

The PW engine-powered A320 neo planes in the fleets of IndiGo and GoAir have been facing glitches both mid-air and on-ground since their induction way back in 2016.

The airline, in its presentation that was posted on BSE's website, said that adverse movement in fuel prices "and/or foreign currency" from the current levels are "major risks".

The budget carrier stated that pilot shortage, uncertainty on Jet Airways' slots and bilateral rights, risk of losing other bilateral rights and PW engine issues are the major "revenue headwinds" of 2019-20.

After Jet Airways ran out of funds, it had shut down operations on April 17 and this led to a sudden rise in domestic and international airfares.

Consequently, the Centre decided to temporarily allocate the slots as well as international flying rights of Jet Airways to other airlines to start new flights to fill the supply gap.

A slot is a date and time on which an airline's aircraft is permitted to depart or arrive at an airport.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp