Published On: Fri, Aug 18th, 2017

IndiGo awaits GST clarification to import engines, denies flight cancellations

New Delhi: Budget passenger airline IndiGo on Friday said it is awaiting certain clarifications regarding GST rates applicable on the import of engines which it requires for its grounded Airbus A-320neo aircraft.

The airline also asserted that its pre-scheduled operations are normal and flights are operating “on-time”

The airline also asserted that its pre-scheduled operations are normal and flights are operating “on-time”.

“We have four neo aircraft grounded due to four engines stuck at customs as we are awaiting certain clarifications post the implementation of GST. This has lead to unplanned flight cancellations,” IndiGo said in a statement.

“There is no new development pertaining to the grounding of neos. As we have said on our June earnings’ call, there were instances when up to nine neos were grounded due to inadequate spare engines.”

The airline added that at present eight of its neos have been grounded due to unavailability of spare engines.

“These are already factored in our revised schedule which was finalised in June and there are no additional flight cancellations on account of these neos,” the statement added.

IndiGo was reacting to a media report that claimed that the carrier has cancelled over 80 daily flights and grounded 13 of its new A-320neo aircraft due to engine-related issues.

“There are misleading information being spread by a section of the media on IndiGo’s flight cancellations. We made detailed and comprehensive comments in our last earning call. We have no further comments to offer,” Aditya Ghosh, IndiGo’s President and Whole-time Director, said in a statement.

Ghosh alleged that misinformation was being spread “on a day when IndiGo came out on top in On-Time-Performance by a long margin”.

The airline clarified that only eight of its A-320neo aircraft have been grounded, but since April 2017.

However, the news led to a fall of 0.49 per cent or Rs 6.20 in the price of the company’s scrip at the BSE. The stock closed at Rs 1,270.30.

On August 4, civil aviation regulator Directorate General of Civil Aviation (DGCA) had expressed concern over grounding of some A-320neo aircraft of IndiGo and GoAir due to engine-related issues.

The DGCA that time held a meeting with officials and executives from engine manufacturer Pratt & Whitney (P&W), Airbus, IndiGo and GoAir.

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