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.
IndiGo, India’s
biggest airline, is in talks with Pratt & Whitney and CFM International
Inc. for its next batch of jet engine orders, according to people familiar with
the matter, a rare sign of dealmaking in a sector that’s been paralyzed by the
virus pandemic.
The discussions with the rival manufacturers relate to engines that would power
about 150 new Airbus SE A320neo jets, the people said, asking not to be
identified because the negotiations are private. Talks are preliminary and
there’s no timeline on when any agreement may be reached, the people said.
Based on the size
of IndiGo’s
last engine order -- a $20 billion transaction with CFM that covered 280 planes
and was the largest engine order in history -- the new agreement could be worth
around $10.7 billion, including service, repair, and maintenance. The pandemic
presents a unique opportunity, however, for IndiGo to potentially bargain with
the engine makers, both of which it now counts as suppliers.
“This is the
perfect time to engage given the overall market conditions and state of
competitors -- both of which will enable Indigo to get very lucrative deals,”
said Satyendra Pandey, a partner at New Delhi-based advisory AT-TV and a former
head of strategy for Go
Airlines India. “As this selection is for the remaining aircraft, it
involves the long-term performance and cost forecasts.”
Representatives
for IndiGo and CFM declined to comment. Pratt & Whitney didn’t immediately
respond to a request for comment.
No comments:
Post a Comment