Airbus Delays A320neo Deliveries To IndiGo

IndiGo said it will receive its first A320neo in March, three months later than originally planned after Airbus said it could not deliver the aircraft on time.

IndiGo, India's biggest airline by market share, had expected its first A320neo in December and nine more by March. The airline said it would now take delivery of 24 aircraft in the year to March 2017, fewer than the 26 originally planned.

Airbus has been renegotiating delivery for the A320neo, an upgraded fuel-saving version of its best-selling medium-haul jet, due to what it described as issues with documentation for new Pratt & Whitney engines.

IndiGo, owned by InterGlobe Aviation, is one of Airbus's biggest customers as it expands its fleet to tap into India's booming air travel market.

It agreed the purchase of 250 A320neos in August, handing Airbus its largest-ever order by number of planes, and took its total A320-family orders to 530.

In a statement on Monday, IndiGo said its total fleet size, currently numbering around 100 planes, is expected to increase by about 22.4 percent year-on-year in the 2017 financial year.

"With the resolution of the delivery of A320neos, IndiGo expects to continue with its strong operating performance, growth in profitability and healthy cash generation," IndiGo President Aditya Ghosh said.

For the three months to end-March, IndiGo said exchange rate movements in the Indian rupee against the US dollar would impact its net profit and revenue growth, which it forecasts to rise by 6 to 8 percent over last year.