Representatives for IndiGo
and CFM declined to comment. Pratt & Whitney didn’t immediately respond to a request for comment.
Operated by InterGlobe Aviation Ltd., IndiGo is the world’s biggest customer for jets in the A320neo family, with as many as 730 on order. The airline has yet to decide the engine type for the 300 that would be outstanding.
That any airline is negotiating over future aircraft and related parts is a surprise considering how thoroughly the global aviation industry has been demoralized by the pandemic. India had the world’s fastest-growing aviation market for several years before demand started to falter and Covid-19 shut borders and diminished international travel.
IndiGo, while impacted by border closures and a dearth of international travel like other airlines, is relatively rich, with about $2.4 billion of cash and equivalents as of Sept. 30. Total debt as of that date was $3.5 billion.
Although Pratt, which is owned by Raytheon Technologies Corp, has spent $10 billion to develop a new engine for narrowbody jets, it’s faced delivery delays and multiple issues leading to midair shutdowns. IndiGo decided last year to switch away from its engines, placing a $20 billion order instead with rival CFM, a venture between General Electric Co. and France’s Safran SA.
Airlines around the world have deferred or canceled hundreds of plane orders as demand plummets. Any meaningful recovery is seen as years away and a viable vaccine remains elusive. That has forced both Airbus and U.S. rival Boeing Co. to cut production and thousands of jobs, putting pressure in turn on hundreds of suppliers.
IndiGo plans to trim its fleet size over the next two years, taking new deliveries and returning older jets at an even faster clip, before starting to grow again by 2023, Chief Executive Officer Ronojoy Dutta told analysts during a post-earnings conference call last week. Unlike other carriers, IndiGo hasn’t engaged in any “major renegotiation” with Airbus on new deliveries, Dutta said.