IndiGo Seals Customized Compensation Deal Amid Engine Woes

InterGlobe Aviation, the parent company of IndiGo, will receive customized compensation from International Aero Engine, an affiliate of Pratt & Whitney, for grounded aircraft. The exact amount of compensation remains undisclosed. A large number of IndiGo aircraft are currently grounded due to supply chain and engine issues.

InterGlobe Aviation, the parent company of low-cost carrier IndiGo, announced on Friday it will receive a tailored compensation package from International Aero Engine (IAE), a Pratt & Whitney affiliate, to address its grounded aircraft concerns.

According to a regulatory filing, the amendment to the existing agreement with IAE was finalized on June 14, 2024. This customized compensation aims to mitigate the impact of ongoing supply chain disruptions and engine shortages.

However, the airline has not disclosed the specific compensation amount. It was noted in February that around 70 IndiGo aircraft were grounded. Despite these challenges, IndiGo reported a significant profit increase and a dominant domestic market share.