VivaAerobus Secures Compensation from Pratt & Whitney Amid Engine Issues
VivaAerobus (VB, Monterrey Mariano Escobedo), the Mexican low-cost carrier, has successfully negotiated partial compensation from Pratt & Whitney for the disruptions caused by ongoing issues with the geared turbofan (GTF) engines. This compensation has been factored into the airline’s financials, as reflected in its second-quarter operating expenses totaling USD 530 million.
The engine troubles have significantly impacted VivaAerobus’s operations, leading to nearly 28% of its fleet being grounded during the quarter. This situation resulted in an average of 23.4 A320neo Family aircraft being unavailable for service due to engine reliability concerns. To manage the shortfall in capacity, VivaAerobus has adopted several strategic measures including extending existing leases, accelerating the intake of new aircraft deliveries, and engaging short- to medium-term wet-lease arrangements. Notably, the airline has wet-leased twenty A320-200s from Avion Express Malta (4X, Malta International), marking a distinct approach compared to its local competitor, Volaris (Y4, México City International), which has chosen not to utilize ACMI services to supplement its capacity.
The VivaAerobus fleet currently includes 84 aircraft: twenty-five A320-200s, twenty-two A320-200Ns, ten A321-200s, and twenty-eight A321-200NXs. Despite the operational challenges posed by the GTF engine recalls, VivaAerobus managed to post a net profit of USD 34 million for the quarter, which represents a 38.4% increase compared to the same period last year. For the first half of the year, the airline reported a net profit of USD 89.3 million.
This compensation agreement with Pratt & Whitney not only helps alleviate some of the financial strain caused by the engine issues but also demonstrates VivaAerobus’s proactive management in navigating through the operational disruptions while maintaining its commitment to service and profitability.
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com