IndiGo plans to order engines worth over $10 billion

IndiGo is in talks with Pratt & Whitney and CFM International

indigo A320neo Computer-generated image of an IndiGo Airbus A320neo | Airbus

In news that provides a glimmer of optimism amid the gloom in the aviation sector, Bloomberg has reported that IndiGo is negotiating to buy engines for a batch of about 150 aircraft.

Bloomberg reported on Thursday that IndiGo, India's largest airline, is in talks with Pratt & Whitney and CFM International for engines to power about 150 Airbus SE A320neo aircraft. CFM International is a joint venture between General Electric and Safran of France.

While the negotiations were reported to be at a preliminary stage, Bloomberg reported "the new agreement could be worth around $10.7 billion, including service, repair and maintenance".

In June last year, IndiGo placed an order worth over $20 billion with CFM International for engines to power 280 Airbus A320neo and A321neo. This was the largest-ever single order for engines in history.

Bloomberg quoted analysts as saying the adverse market conditions presented a "perfect time" for IndiGo to get "lucrative deals" as it could bargain with engine makers.

IndiGo has 730 Airbus A320neo jets on order, making it the world's largest customer for the type. In October last year, IndiGo placed an order for 300 Airbus A320neo jets.

IndiGo first placed an order for engines from CFM International in 2016 after it began facing problems with the engines from Pratt & Whitney.

The news of the latest negotiations comes after IndiGo reported a quarterly loss. Last week, IndiGo reported a net loss of Rs 1,194 crore for the second quarter ended September 30. It had posted a net loss of Rs 1,062 crore in the September quarter of the previous financial year. In the April-June period this year, the airline had incurred a net loss of Rs 2,884 crore.

The airline's total income stood at Rs 3,029 crore in the second quarter of 2020-21, a decrease of 64.5 per cent over the year-ago period, it said in a statement.

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