homeaviation NewsEXCLUSIVE: IndiGo in constant and intense talks with Pratt & Whitney, says CEO Pieter Elbers
EXCLUSIVE: IndiGo in constant and intense talks with Pratt & Whitney, says CEO Pieter Elbers
In an exclusive interaction with CNBC-TV18, Pieter Elbers, CEO of IndiGo said, "Pratt and Whitney issue has been there for over a year. We're in talks with PW to get the supply chain issues sorted. Talks are constant and intense with PW, and we've taken mitigating measures. We've still been able to deliver capacity guidance despite the PW issue."
India's largest airline in terms of market share and fleet size, IndiGo, is in discussions with American engine maker Pratt & Whitney to resolve engine and supply chain issues. In an exclusive interaction with CNBC-TV18, Pieter Elbers, CEO of IndiGo said, "Pratt and Whitney issue has been there for over a year. We're in talks with PW to get the supply chain issues sorted. Talks are constant and intense with PW, and we've taken mitigating measures. We've still been able to deliver capacity guidance despite the PW issue."
The American engine maker recently said that a rare condition in powered metal would impact more than 1,200 engines manufactured between 2015 and 2021. These engines must be removed and inspected for micro-cracks.
Last month, the Indian aviation regulator Directorate General of Civil Aviation (DGCA) stated that the impact of this Service Instruction on IndiGo's fleet is minimal, with only two engines, currently operational in their fleet, requiring removal out of a total of 13 affected engines (of which 11 are currently non-operational). IndiGo also has around 40 aircraft grounded due to frequent engine issues.
The Aviation Working Group (AWG) has once again downgraded India's compliance rating with international leasing laws, giving India a negative outlook and placing the country on the watchlist.
In response to this, Pieter Elbers said, "In discussions on a permanent basis with lease companies. Indian carriers have different track records. We continue to work with our lease companies. IndiGo has a good track record and long history with lease companies."
IndiGo is also preparing for the upcoming winter season, with several new routes added domestically and internationally to cater to the festive season. Elbers added, "We have added new capacity, new flights and already wet-leased two widebodies. We're taking mitigating measures in the supply chain. We're extending certain existing leases and also leasing 11 new aircraft temporarily. Demand is strong, IndiGo wants to ensure that passengers get the airlift that's needed. Expect to carry 100 million customers this year."
On being asked about the impact of crude prices and likely impact on tickets, Elbers said, "There is a correlation between crude oil and ticket prices. At the end of the day, ticket prices should cover the jump in crude oil prices. We're reviewing measures for crude prices."
First Published: Sept 26, 2023 6:55 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Priyanka Gandhi — Congress strategist, campaigner, crisis manager, says expert
Jun 18, 2024 8:22 PM
EVM row: Meet Ravindra Waikar, Shiv Sena MP at the centre of controversy
Jun 17, 2024 1:26 PM
EVM unlocking controversy in Mumbai North West Lok Sabha seat — What we know so far
Jun 17, 2024 10:25 AM