IndiGo gains on regulatory nod to wet-lease 11 A320 aircraft

Shares of Interglobe Aviation Limited rose 0.5 percent to Rs 2,460 in early trade on September 14 after the aviation major got the go-ahead to wet-lease 11 A320 aircraft, CNBC-TV18 reported, citing sources at the Directorate General of Civil Aviation. As per the Federal Aviation Administration, under a wet leasing arrangement, the owner supplies the aircraft as well as at least one crew member. The owner assumes operational responsibility, which includes performing maintenance, procuring insurance, and other legal responsibilities of operations.

This is the second time this year the Gurugram-based budget airline has been seeking wet-leased planes for its fleet. Earlier this year, IndiGo inducted three wide-body B777 planes on lease from Turkish Airlines for catering to the increasing passenger traffic to Istanbul and beyond.

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This addition to its fleet comes ahead of the impending engine recall by Pratt & Whitney (P&W). IndiGo has been struggling due to the ongoing engine issues plaguing Pratt & Whitney. The parent company of Pratt & Whitney, RTX, has issued a statement indicating that a significant number of aircraft worldwide may face grounding over the next few years due to engine issues.

Also read: IndiGo’s board approves creation of a financial services arm at GIFT City

RTX has recently shared an update regarding the inspection of A320NEO engines, suggesting that approximately 600 to 700 engines that currently power the A320neo will be removed by early 2024. Earlier in the month, RTX had already announced the removal of 200 engines, with the majority of additional engine removals scheduled to take place during 2023 and the early part of 2024.

Also read: Chasing 100 million passengers, IndiGo needs wet leases as P&W issues continue to haunt

These supply chain challenges have caused the Gurugram-based airline to ground approximately 40 of its aircraft. Out of its total fleet of 316 planes, 136 are equipped with Pratt & Whitney engines, raising concerns about the airline’s operational capabilities.

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