Indian Airlines is seeking compensation from International Aero Engines (IAE)for the higher-than-expected fuel consumption of the V2500 engines which power its Airbus A320s.

IAE, a joint venture including Pratt & Whitney and Rolls-Royce, declines to comment on the extent of the shortfall, although it is thought to be around 2%. The engine manufacturer says that it has had "positive meetings" with the airline and intends to "-live up to all contractual obligations".

It is understood that performance guarantees given to Indian Airlines when it ordered its A320s in 1985 (when the V2500 was still in development) have since proved to be optimistic.

Indian Airlines officials stress that the claim does not relate to how the performance of the V2500 compares with that of the CFM International CFM56 engine.

Indian is reportedly trying to obtain compensation to offset penalties imposed by IAE after the airline deferred delivery of 12 A320s and their engines. This followed the crash of one of its aircraft at Bangalore in 1990. The airline was unavailable to comment.

Source: Flight International