InterGlobe Aviation, the parent company of IndiGo, has recently finalized a compensation agreement with International Aero Engines (IAE), an affiliate of Pratt & Whitney, to address the grounded aircraft affected by engine issues. The agreement, reached on June 14, 2024, signifies a significant step in resolving the operational challenges faced by the airline. Over 70 IndiGo planes have been grounded due to problems with Pratt & Whitney engines, with more than 30 aircraft impacted by a powder metal defect and others sidelined due to earlier issues.
Although the exact financial details of the compensation were not disclosed, the arrangement reflects InterGlobe Aviation’s efforts to mitigate the impacts of the engine-related problems. The resolution comes in the wake of Pratt & Whitney identifying a rare powder metal defect that posed a risk of engine component cracking in Airbus A320neo aircraft. This discovery led to accelerated inspections across affected fleets, potentially resulting in the grounding of 600-700 Airbus jets between 2023 and 2026.
Despite these challenges, InterGlobe Aviation reported robust financial performance in the fiscal year ending March 2024. The carrier, based in Gurugram, experienced a significant increase in profit after tax, reaching Rs 1,894.8 crore for the March quarter. The growth was attributed to higher passenger traffic, expanded capacity, and favorable market conditions. In the full fiscal year, IndiGo achieved a net profit of Rs 8,172.5 crore on a record total income of Rs 18,505.1 crore, operating a fleet of 367 planes as of March 2024.
The compensation agreement between InterGlobe Aviation and IAE underscores the commitment to addressing the ongoing engine issues and ensuring the operational efficiency of IndiGo’s fleet. The airline’s performance highlights its resilience in navigating challenges while maintaining its position as a key player in the domestic aviation sector.
