Indian low-cost carrier IndiGo is likely to see grounding of more aircraft from the fourth quarter of this financial year, however, the exact impact due to the new Pratt & Whitney (P&W) engine issue is yet to be assessed. American engine maker P&W said earlier this year that around 1,000 engines are likely to get affected across airlines globally as the company detected powder metal contamination that can lead to some engine components cracking.
In an exclusive interaction with CNBC-TV18, IndiGo CEO Pieter Elbers said, "We haven't established the exact number of airplane groundings because of the P&W powder metal issue. We are working with P&W on the precise number and precise impact."
The airline, he said, had been taking measures to mitigate disruptions due to the new engine issue and certain measures are already in place. Measures put in place by IndiGo includes extending existing leases, keeping certain aircraft in operation and inducting a couple of new ATRs.
"We will induct one more ATR in December. We have extended some leases, reintroduced Airbus A320ceo aircraft, introduced two wide bodies earlier this year. We are also working on a set of new damp leases, already wet leased 11 aircraft. It's difficult to give the total number of more leases," the CEO said.
Elbers added that the airline was mitigating measures to help deliver the capacity guidance. "Our capacity guidance for this financial year is in the north of mid-teens."
The airline will get clarity soon from the American engine maker and will be issuing a new bulletin on this issue. India's largest airline, IndiGo, already has 40 aircraft grounded due to supply-chain issues with P&W engines.
The CEO said the airline had a "pragmatic and evolving approach" on the P&W issue. Financial consequences are being discussed between IndiGo and Pratt & Whitney and there is a need for more clarity on the precise impact.
Last week, IndiGo reported a profit of ₹188.9 crore for the quarter ended September 2023 (Q2) versus a net loss of ₹1,583.33 crore in the same period a year ago. Revenue from operations increased to 19.5% to ₹14,943 crore. The airline is confident of a good performance in the rest of the quarters.
Elbers told CNBC TV18, "Q2 is usually a weak quarter, profitability performance speaks a lot. Successful implementation and execution of our strategy supported by strong demand worked for us in Q2. We're confident that successful implementation of our strategy and market demand will work for us in the coming quarters. We've delivered four profitable quarters in a row."
Last month IndiGo introduced fuel charge on all flights to offset rising Aviation Turbine Fuel (ATF) prices. Passengers booking IndiGo flights will incur a fuel charge, per sector, based on the sector distance.
When asked about whether this will stay, Elbers said, "We brought fuel charge to keep things transparent. There needs to be correlation between the price of fuel and the price of tickets."
When asked about whether the airline is planning to order widebody aircraft, Elbers told CNBC-TV18, "Not speculating on future orders, what we have today is bringing us a solid basis to grow IndiGo further. 970 aircraft are set to be delivered to IndiGo. This gives us stability and predictability."
In an exclusive interaction with CNBC-TV18, IndiGo CEO Pieter Elbers said, "We haven't established the exact number of airplane groundings because of the P&W powder metal issue. We are working with P&W on the precise number and precise impact."
The airline, he said, had been taking measures to mitigate disruptions due to the new engine issue and certain measures are already in place. Measures put in place by IndiGo includes extending existing leases, keeping certain aircraft in operation and inducting a couple of new ATRs.
"We will induct one more ATR in December. We have extended some leases, reintroduced Airbus A320ceo aircraft, introduced two wide bodies earlier this year. We are also working on a set of new damp leases, already wet leased 11 aircraft. It's difficult to give the total number of more leases," the CEO said.
Elbers added that the airline was mitigating measures to help deliver the capacity guidance. "Our capacity guidance for this financial year is in the north of mid-teens."
The airline will get clarity soon from the American engine maker and will be issuing a new bulletin on this issue. India's largest airline, IndiGo, already has 40 aircraft grounded due to supply-chain issues with P&W engines.
The CEO said the airline had a "pragmatic and evolving approach" on the P&W issue. Financial consequences are being discussed between IndiGo and Pratt & Whitney and there is a need for more clarity on the precise impact.
Last week, IndiGo reported a profit of ₹188.9 crore for the quarter ended September 2023 (Q2) versus a net loss of ₹1,583.33 crore in the same period a year ago. Revenue from operations increased to 19.5% to ₹14,943 crore. The airline is confident of a good performance in the rest of the quarters.
Elbers told CNBC TV18, "Q2 is usually a weak quarter, profitability performance speaks a lot. Successful implementation and execution of our strategy supported by strong demand worked for us in Q2. We're confident that successful implementation of our strategy and market demand will work for us in the coming quarters. We've delivered four profitable quarters in a row."
Last month IndiGo introduced fuel charge on all flights to offset rising Aviation Turbine Fuel (ATF) prices. Passengers booking IndiGo flights will incur a fuel charge, per sector, based on the sector distance.
When asked about whether this will stay, Elbers said, "We brought fuel charge to keep things transparent. There needs to be correlation between the price of fuel and the price of tickets."
When asked about whether the airline is planning to order widebody aircraft, Elbers told CNBC-TV18, "Not speculating on future orders, what we have today is bringing us a solid basis to grow IndiGo further. 970 aircraft are set to be delivered to IndiGo. This gives us stability and predictability."
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