IndiGo, India's biggest carrier in terms of domestic market share and fleet, is waiting for clarity from engine manufacturer Pratt & Whitney (P&W) over the timeline for when engines will go for inspection, leaving the airline's planes grounded, its Chief Executive Officer Pieter Elbers said on November 6.
Last week, IndiGo said it expects aircraft grounding due to engine issues with Pratt & Whitney's new Airbus A320neo models to increase from January 2024.
"We're in constant discussion with Pratt and Whitney for clarity on the timeline of engine visits to address the powder metal issue," Elbers said as part of a round table discussion on November 6.
He added that at the moment, the precise timing or duration and the exact impact of aircraft groundings due to the powder metal issues is not known and P&W will come out with a timeline in the coming few months.
"We can make some estimates but we don't know precisely. So what we are doing, in fact, is creating a set of mitigating measures to deal with it," Elbers said.
Powder metal issue with P&W planes
The parent company of Pratt & Whitney, RTX Corp, had announced in September that it would be increasing the scope of recent engine inspections.
The problem, which the company first disclosed in July, stems from defects with powder metal used to make some of the popular Pratt & Whitney geared turbofan engines, a flaw that can cause cracks. RTX said that about 600 to 700 engines beyond the company’s early forecast will have to be removed for shop visits through 2026.
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The Pratt & Whitney turbine engine used on new Airbus A320neo models has been manufactured with flawed components. This will ground hundreds of aircraft and affect nearly the entire fleet of GTF-powered Airbus A320neos.
The company estimated an average of 350 Airbus A320 family planes per year will be grounded from next year through 2026. The airline said it expects the issue to cost up to $7 billion.
Gaurav Negi, Chief Financial Officer (CFO) of IndiGo, added that IndiGo will see a higher number of aircraft being grounded due to engine issues from January 2024.
"We have recently received further communication from our OEM Pratt & Whitney with respect to powder metal issues. Globally, we understand that a large number of incremental engines are being removed for shop visits between 2023 and 2026. The majority of these engine removals are being planned for 2023 and early 2024," Negi had said in the conference call.
Negi added that IndiGo's estimates indicate that these accelerated inspections and incremental shop visits will further impact its operating fleet from Q4 onwards and will lead to a higher number of groundings.
IndiGo will have to ground its planes fitted with P&W's PW1100G geared turbofan (GTF) engines for a period of 250-300 days so that these engines can be inspected for defective high-pressure turbine and compressor discs.
IndiGo currently operates 176 A320neo as part of its fleet of 334 aircraft and currently has over 40 aircraft grounded due to P&W engine issues.
While IndiGo did not quantify how many aircraft it expects to be grounded after January 2024, Elbers added that the airline is confident of meeting its guidance of 15-19 percent fleet expansion in 2023-24 when compared to a year ago.
Elbers indicated that IndiGo is scheduled to take delivery of one new aircraft every week starting April 1, 2024. In Q2 FY24, the company added 18 aircraft to a fleet of 316.
"IndiGo has taken a number of measures including leasing new aircraft, and reintroduction of older Airbus CEO aircraft to mitigate the issue of grounded planes. Going forward, IndiGo will take new measures to mitigate the issue of grounded planes," Elbers added.
The management’s long-term vision is to double the size of IndiGo by the end of this decade. It has already placed orders for 970 aircraft which will help it to achieve the long-term goal.
Elbers added that IndiGo will continue to look at opportunities in the secondary leasing market to expand its fleet to mitigate the impact of grounded planes.
IndiGo has retained 14 of its older Airbus A320ceo, extended leases on 36 other aircraft, and is taking 11 additional aircraft on lease starting November. It is also leasing 12 more A320ceos from the secondary market starting January, Gaurav Negi had said.
International Expansion
Elbers also said that IndiGo will launch new flights to Denpasar International Airport in Bali, Indonesia, and Prince Mohammed Bin Abdulaziz International Airport in Madinah, Saudi Arabia.
"We will continue our internationalisation," Elbers said and added that currently, the airline operates around 500 routes, including 100 international ones.
He added that IndiGo's network expansion in the international market will continue with the arrival of the Airbus A321 XLRs, which the airline will take delivery starting early 2025.
"Places like Athens could be reached at that point in time (once the airline takes delivery of A321 XLRs) it can bring us further into Asia, places like Seoul could also be reached," Elbers said.
Elbers also said that there should be no reason why Indian carriers cannot fly to a market like Santorini or Mykonos.
He added that currently, 26 percent of IndiGo's available seat kilometers are being deployed on the airline's international routes, which it plans to increase to 30 percent soon.
IndiGo's growing international network gives the airline the flexibility to tap into the global market should domestic air traffic take a hit going forward, according to Elbers.
The airline is in discussion with Qantas Airways to expand its existing codeshare agreement with the airline, he added
IndiGo Website Concerns
When it comes to the airline's website, IndiGo's CEO also admitted that their communication strategy might have been flawed, leading to misconceptions. IndiGo has faced criticism for its approach to web check-in and charging for seats.
Elbers clarified that web check-in is not mandatory but encouraged for passenger convenience. This move aims to streamline the boarding process and enhance the overall travel experience.
He also said that IndiGo has taken feedback from its customers about its website and will be open to revamping its website, but it will be a gradual process.
IndiGo is to meet the central government on November 8 to address consumer-related issues.
Consumer Affairs Secretary Rohit Kumar Singh has in the past highlighted that approximately 10,000 complaints related to the airline sector have been registered through the government's National Consumer Helpline in the last one year and about half of the complaints are regarding consumers not getting refunds from the airlines after cancellation of the ticket.
Pilots' Safety
Elbers also said that IndiGo values the safety of its customers and its pilots very seriously. He added that the issue needs a "very considerate, holistic and in-depth approach".
"I resent the statement that nothing is being done (to address pilot fatigue). We are taking feedback from pilots very seriously. We are looking at US, EU framework of working hours. This requires a very considerate, holistic and in-depth approach," Elbers.
Elbers added that IndiGo has introduced a wrist gadget and use a ground device to detect fatigue among pilots and check their level of alertness before and after flying an aircraft.
In September, IndiGo announced its partnership with the Thales Group as an early adopter of its fatigue analysis tool. The airline will conduct a proof of concept trial for its technology-driven interface to assess pilot alertness levels over the next few months, it said.
The airline’s development to introduce technology to detect pilot fatigue comes days after one of IndiGo’s pilots, Manoj Subramanyam, aged 40, died due to sudden cardiac arrest at the Nagpur airport in August, just before boarding a flight that he was scheduled to fly to Pune.
Recently, aviation regulator DGCA proposed various changes to norms governing duty timings of flight crew, including more rest time for pilots, amid concerns over fatigue.
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