NEW DELHI: InterGlobe Aviation, the parent company of budget airline IndiGo on Friday said that it has reached an agreement with International Aero Engine (IAE), an affiliate of Pratt & Whitney, to receive a “customised” compensation package, for grounded aircraft.
In a regulatory filing InterGlobe Aviation said, “On June 14, 2024, InterGlobe Aviation Ltd finalised an amendment to the existing agreement with International Aero Engines, LLC, an affiliate of Pratt & Whitney pursuant to which IAE will provide IndiGo with a customised compensation in relation to the ongoing situation of aircraft on ground due to unavailability of engines.”
The filing did not disclose the specific amount of compensation that InterGlobe Aviation will receive from IAE.IndiGo is currently facing challenges with a significant number of its aircraft being grounded due to supply chain and engine-related problems.
The airline had previously disclosed in February that more than 70 IndiGo aircraft have been grounded due to Pratt engine issues, with more than 30 on ground due to a powder metal defect, while the rest are impacted by other issues.
Despite these hurdles, IndiGo has managed to maintain its strong financial performance. The company reported increase in profit after tax for the March quarter, reaching Rs 1,894.8 crore, fuelled by high passenger traffic, expanded capacity, and a favorable external environment.
For the fiscal year 2024, IndiGo achieved a net profit of Rs 8,172.5 crore, accompanied by a record total income of Rs 18,505.1 crore. IndiGo’s fleet consisted of 367 aircraft, which included 13 planes on damp lease, at the end of March.
The airline’s domestic market share continued to grow, reaching 61.6 per cent in May, according to the latest data released by the Directorate General of Civil Aviation (DGCA).
(With inputs from agencies)