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Wed, Sep 04, 2013

India's Kingfisher Airlines Says IAE Engines 'Inherently Defective'

Seeks $236 Million In Damages From The Engine Maker

One of the companies that founded Kingfisher Airlines in India has filed suit against engine maker IAE seeking $236 million in damages, charging International Aero Engines with making an "inherently defective" product.

The suit was brought by United Breweries (Holdings) Ltd in a court in Bangalore, India. The suit was made public in Kingfisher's annual report, which was made available Monday. Reuters reports that the suit charges that the IAE V2500-A5 engines purchased by Kingfisher were "inherently defective both in design and manufacture."

Kingfisher has not flown since last October, and lost its flying permit from the Indian government on January 1, 2013, according to a report at the time in India Today. The airline was grounded due to its mounting financial losses and inability to pay its employees or bills. The airline never reported a profit in its eight years of operation.

The company's 2011 annual report said that it had grounded its 14 Airbus A320 aircraft equipped with V2500 engines in March of that year because of "technical problems" with the powerplants.

IAE, which is partially owned by Pratt & Whitney, said through Pratt & Whitney spokeswoman Heather Waldron that the company would not comment on pending litigation. Kingfisher had no comment beyond the annual report.

FMI: www.flykingfisher.com

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