InterGlobe Aviation Ltd, the parent company of no-frills carrier IndiGo, announced on Friday that it will receive a “customised” compensation from aircraft engine maker Pratt & Whitney’s affiliate firm, International Aero Engine (IAE), for its grounded aircraft. This development comes as part of an amendment to the existing agreement between the two companies.
On June 14, 2024, InterGlobe Aviation Ltd finalized this amendment with International Aero Engines, LLC, an affiliate of Pratt & Whitney. According to the regulatory filing by InterGlobe Aviation, IAE will provide IndiGo with a tailored compensation package addressing the ongoing issue of aircraft being grounded due to the unavailability of engines.
This compensation agreement aims to mitigate the financial impact on IndiGo caused by the downtime of its aircraft, ensuring that the airline can maintain its operations and service levels despite the challenges posed by the engine shortages.
The specific details of the compensation package have not been disclosed, but this move highlights the commitment of both companies to resolving the operational disruptions faced by IndiGo, IndiGo known for its budget-friendly services, continues to be a leading player in the Indian aviation market. This compensation from Pratt & Whitney’s affiliate is expected to support the airline in maintaining its fleet and ensuring minimal disruption to its services.