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Bloomberg
An order for IndiGo to ground some of its Airbus SE A320neo planes for engine upgrades could impede the expansion of one of the world’s fastest-growing airlines.
For every addition to its fleet, IndiGo must ground an A320neo plane that hasn’t had its Pratt & Whitney engines modified, the Directorate General of Civil Aviation (DGCA) said following a series of problems on the carrier’s jets, including in-flight shutdowns.
The order essentially prevents IndiGo from adding new routes or increasing frequencies until the engine issues are fixed.
IndiGo, the world’s biggest customer for the best-selling Airbus model, may have to adjust its delivery schedule with the plane and engine manufacturers, hurting its ability to consolidate a firm lead over local rivals in market share. Shares of InterGlobe Aviation Ltd, which operates the airline, fell 4.3% in Mumbai, the biggest loss in nearly a month.
The DGCA also questioned IndiGo’s ability of meeting a January 31 deadline to fix the engine issue, saying in a statement that the target doesn’t “instill enough confidence.†The regulator said its order will remain until all the original Pratt engines have been replaced.
The substitution with new aircraft will help avoid “large-scale disruptions†from grounding the entire unmodified fleet if IndiGo fails to amend all planes on time, the DGCA said.