IndiGo Airlines has been suffering from supply chain issues, the company revealed in its annual report on Friday. The airline detailed the lack of availability of spare engines for its neo aircraft and noted that it is working towards ensuring the supply issues have a minimum economic and operational impact on the company.
According to a PTI report, the airline is currently working with airframe and engine manufacturers to combat the issue. The company has set an aim of 100 million passengers for the current fiscal year and is further working towards setting up its sales and distribution channels for establishing a stronger international presence.
Currently, with a fleet of more than 300 planes and operating over 1800 flights on a daily basis, IndiGo has established itself as the country’s largest carrier, the report stated.
Talking further about its supply chain issues, the company said a failure to receive timely deliveries of essential aircraft parts, like spare engines, might have an impact on its financials.
In addition to working with engine manufacturers, IndiGo stated it has taken many measures to work on the operational challenges being faced by the company. These efforts include reducing operational disruptions, deferring phasing out of CEOs, and extending the lease of aircrafts due to be redelivered, among others.
Earlier this week, the company had said that it was working with U.S.-based engine maker Pratt & Whitney to check and minimise any impact on its fleet after the latter decided to inspect about 1200 of it’s engines globally for certain defects.
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IndiGo’s A320 planes are powered by P&W engines. The airline flew about 86 million passengers in the fiscal year ended March 2023, reporting a jump of 72 per cent to the previous year and 14 per cent to the pre-pandemic record financial year of 2020.
Talking about the outlook for the company, IndiGo CEO Pieter Elbers said the airline is looking to double in size and scale and gearing up to become a 100 million passenger airline. The carrier also plans to add one more freighter to its fleet by this year. At the moment, it has two narrow-body freighters.
Elbers further added the company expects it’s international capacity (Available Seat Kilometre - ASK) to reach about 30 per cent in the next two years.