IndiGo crisis: $20 billion CFM deal may be the trigger for row
Mumbai: The $20 billion agreement InterGlobe Aviation Ltd signed in June with aircraft engine maker CFM International may have triggered the public spat between the two promoter groups of the company that operates the IndiGo airline, according to two people with knowledge of the matter.
On 17 June, IndiGo said it placed an order to buy CFM International LEAP-1A engines to power 280 Airbus A320neo and A321neo aircraft. The deal includes supply of spare engines and an engine overhaul support agreement.
The board’s decision to place such a large order with CFM was not supported by RG Group, the entity controlled by InterGlobe Aviation co-founder Rakesh Gangwal, who has been managing the technical aspects of IndiGo since its inception in 2005.
