Kingfisher seeks $236 million damages from engine-maker IAE

NEW DELHI Mon Sep 2, 2013 9:23pm IST

Customers stand at a Kingfisher Airlines reservation office at the domestic airport in Mumbai March 20, 2012. REUTERS/Vivek Prakash/Files

Customers stand at a Kingfisher Airlines reservation office at the domestic airport in Mumbai March 20, 2012.

Credit: Reuters/Vivek Prakash/Files

Stocks

   

NEW DELHI (Reuters) - A founder group company of grounded Indian carrier Kingfisher Airlines Ltd(KING.NS) is seeking about $236 million in damages from engine-maker International Aero Engines for allegedly supplying "inherently defective" engines, the airline said.

United Breweries (Holdings) Ltd (UBHL.NS) has filed a lawsuit against International Aero Engines AG and its shareholders in a court in the southern Indian city of Bangalore, Kingfisher said in its annual report, which was made publicly available on Monday.

IAE, part-owned by United Technologies Corp's (UTX.N) Pratt & Whitney unit, competes with CFM International - a joint-venture of General Electric (GE.N) and France's Safran (SAF.PA) - to supply engines for Airbus EAD.PA A320 jetliners.

"IAE cannot comment on pending litigation," said Heather Waldron, communications manager for the U.S.-based engine firm.

The lawsuit alleges that the IAE V2500-A5 engines supplied to Kingfisher were "inherently defective, both in design and manufacture", Kingfisher said.

Kingfisher, controlled by liquor baron Vijay Mallya, has not flown since last October because of a funding crunch. Its flying licences expired at the end of last year and the company has so far had little success in a bid to revive operations.

Kingfisher, which had never reported a profit during its eight years of operations, is in talks with one potential investor in the airline as of August 14, it said in the annual report, without naming any company.

A difficult operating environment as well as the engine problems "severely affected" its operations and finances during the year to March 2013, Kingfisher said.

The carrier had grounded 14 Airbus EAD.PA A320 family aircraft that used the V2500 engines during the year to March 2011 due to technical problems relating to the engines, it had said in its annual report for that year.

A Kingfisher spokesman did not comment beyond the annual report. (Reporting by Devidutta Tripathy; Editing by Jane Merriman and Pravin Char)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage