Interglobe Aviation shines on ordering LEAP1A engines

Interglobe Aviation, the operator of Indigo Airline, informed the bourses that it has ordered CFM International LEAP1A engines to power 280 Airbus A320neo and A321neo aircraft, on Monday.

The contract includes spare engines and an overhaul support agreement which is worth more than US$20 billion at list price. Further, the company informed that to support its new LEAP-1A fleet, IndiGo has also signed a long-term Service Agreement. Delivery of the first LEAP-1A-powered A320neo is scheduled in 2020. 

IndiGo has been associated with CFM as a customer since 2016. With this, Indigo is now aiming to move away from Pratt & Whitney engines, which have been experiencing technical glitches. At present, the company operates a fleet of 17 A320ceo aircraft powered by CFM56-5B engines as part of a total fleet of 215 A320/A321 family aircraft.

With this development, on Monday, the stock of Interglobe Aviation Limited surged nearly 2 per cent to touch an intra-day high of Rs. 1,673.6 per share from its previous close of Rs. 1,640.35. At 12.34 hours the stock was trading at 1664, up by nearly 1.4 per cent.