Airline in talks with Airbus, P&W over compensation concerning engine troubles; two of its planes are grounded due to engine issues
Wadia Group-promoted budget carrier GoAir is in constant touch with the aircraft and the engine manufacturers for its A320neo planes over compensation issues. It may also add 10-13 such aircraft with the latest engines by the end of this financial year.
Speaking on the sidelines of the announcement of GoAir’s entry into international markets, the airline’s chief executive Cornelis Vrieswijk said that talks with the manufacturer are on for the “acceptable compensation”. He hoped that all the issues with the engine would end by this year.
Vrieswijk, a former EasyJet executive who joined GoAir in June this year had earlier said the ongoing issues with Pratt & Whitney engines powering the Airbus A320neo planes were affecting the airline’s plans and putting them under “a constant state of uncertainty”. He had also said that neither the planemaker nor the engine manufacturer were “very supportive” towards their customers on this issue.
At present, two of GoAir's planes are grounded due to engine troubles. Vrieswijk added that there is a sufficient supply of these engines and they are able to replace the affected engines quickly, though every change affects the operations.
However, Vrieswijk is concerned that there is no maintenance station for the engines in India and the planes have to be flown to either the US or Europe for servicing. With more planes joining the fleet in times to come, the situation may worsen. “The problem is getting intensified due to harsh environmental conditions in India,” he continued.
On whether the airline will be cutting its fleet order considering high fuel prices, engine issues and tough macroeconomic conditions, the airline executives said that there are no plans as such. However, they do have the freedom to accelerate or decelerate the delivery depending on the needs and demands, they added. The executives hoped the situation to improve with the arrival of peak season in October.
The airline industry in India is going through a tough time with rising fuel prices and low fares. Almost all the carriers are facing severe strain, including market leader IndiGo that saw almost all its profit erased in the latest quarter results announced earlier this month. Rival SpiceJet saw a loss of around Rs 38 crore while Naresh Goyal-promoted Jet Airways is facing its toughest time with a massive loss of Rs 1,326 crore reported during the first quarter ended June 30.
GoAir will begin its international foray in October by flying to Phuket in Thailand and Male in the Maldives. The airline will operate three direct flights per week on Mumbai-Phuket-Mumbai route and two direct services per week for Delhi-Phuket-Delhi. Similarly, there will be three direct services connecting Mumbai with Male and two direct services a week for Delhi and Male. These destinations will also be connected with Bengaluru soon.
The airline will follow the point-to-point travel business model as it is simple and cheaper as compared to a spoke-and-hub model which is very complex and requires a huge network, the executives said.
Commenting on pilot availability, the airline executives said that it is very much in control; though getting security clearance for expat pilots takes anywhere between two and eight months and is, therefore, an issue.
A NEW TERRITORY
- GoAir will begin its international foray in October by flying to Phuket in Thailand and Male in the Maldives; these destinations will also be connected with Bengaluru soon
- The airline will follow the point-to-point travel business model as it is simple and cheaper as compared to a spoke-and-hub model
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "GoAir")
)
)
)
)
)
)
)
)
)
)
)
)
)
)
){kind=tracking}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}