IndiGo slumps most in two months over A320neo jet engines

InterGlobe Aviation, the operator of India’s biggest airline IndiGo, slid the most in two months after President Aditya Ghosh told analysts that a cooling issue faced by some engines powering the A320neo jets has the potential to hurt the carrier’s low-cost model. Shares of the company fell 4.7% to 1,025.30 rupees in Mumbai, their biggest decline since March 9. The stock has dropped 17% this year compared with a 2.6% loss for the benchmark S&P BSE Sensex. The budget airline, which has placed an order with Airbus Group SE for 430 of its fuel-efficient single-aisle A320neo jets, has faced delivery delays for the first batch of the aircraft as engine maker Pratt & Whitney grapples with a technical issue. IndiGo will consider switching to rival CFM International Inc.’s power plants for later orders, Ghosh told analysts on Friday. The carrier is set to take delivery of 24 jets with Pratt engines by March, 2017, he said.<br/>