Saturday 19 December 2015

INDIA: Delivery Of New Version Of IndiGo's Engine Delayed

In a regulatory filing, InterGlobe Aviation, which runs the airline, said it received an official notification from Airbus on December 17 saying delivery of the first A320 neo aircraft has been "delayed due to industrial reasons"

Low-cost carrier IndiGo on Saturday said there is no clear visibility about the delivery of A320 neos as delivery of the first aircraft has been delayed by Airbus due to "industrial reasons".

The development could throw a spanner in the ambitious growth plans of IndiGo, which has been betting on the more fuel-efficient A320 neos (new-engine option) whose delivery was to start from this month.

In a regulatory filing, InterGlobe Aviation, which runs the airline, said it received an official notification from Airbus on December 17 saying delivery of the first A320 neo aircraft has been "delayed due to industrial reasons".

"At this time, IndiGo does not have a clear visibility of its future A320 neo delivery schedule and the potential for additional delays exists. We are looking at mitigating the potential shortfall in capacity through other options," IndiGo said.

The first A320 neo was to be delivered to IndiGo on December 30. As per the original plan, IndiGo was to induct 10 A320 neos in the current fiscal ending March 31, 2016.

IndiGo had announced to acquire 180 A320s, including 150 A320 neos in 2011, the largest aircraft order by any Indian carrier at that time.

European aircraft maker Airbus claims that this new type of aircraft burns 10-15% less fuel than the existing versions.

Currently, IndiGo has a fleet of 98 aircraft, and about 75 of them are on an operating lease -- a business model which has helped it lower costs.

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