Latest news with #Pratt&Whitney
Yahoo
5 days ago
- Business
- Yahoo
Airline chief defends £3.3m pay after backlash
Britain is opposed to rewarding chief executives with the generous pay deals needed to retain top talent, the boss of Wizz Air has said. József Váradi, who received a pay package totalling €3.8m (£3.3m) last year, spoke out after 28pc of the airline's shareholders voted against its remuneration report on Wednesday. He said: 'There is a kind of an anti-executive pay sentiment in the UK, whether we like it or not. 'Some people take a different view on social paradigms. But we cannot ignore the fact that executive pay is a matter of retention, and you have to retain your talents in the company.'As far as I'm concerned we have a very fair and equitable system for addressing performance and realities, and the need to retain top talents.'Wizz Air, which is based in Hungary but listed in London, has suffered a shareholder backlash over executive pay in recent years. Its share price has slumped 45pc over the past year after demand for flights in its core market of Eastern Europe was hurt by the war in Ukraine and the conflict in the Middle East led to the disruption of services to Israel. Unexpected wear and tear to the Pratt & Whitney engines on Wizz Air's jets – caused by the use of contaminated powdered metal during manufacturing – has also forced it to ground about a fifth of the fleet for repairs at any one impact of the setbacks was revealed last month, when Wizz said operating profit in the year through March had dropped to barely a third of the previous total, triggering a stock rout that saw £480m wiped off its market Váradi's pay for the year through March included €2.3m in shares awarded as the prospect of securing a £100m long-term bonus faded. The latter payout requires shares in Wizz Air to hit £120, a distant prospect with it trading at just £11 on Thursday. Mr Váradi said Wizz Air's executive pay is benchmarked to airline industry added: 'We have never been down-voted on anything. Which British government has even been elected with 70pc of the vote? 'What it tells me is that the majority of investors support the direction we are taking, but there is a minority – not a negligible minority – that is not overly happy.'Mr Váradi's remarks add to an ongoing debate over executive salaries after Julia Hoggett, the chief executive of the London Stock Exchange, said Britain was being held back by a campaign against high pay and that a 'constructive discussion' was required. Burberry came under fire in May after it was revealed that Joshua Schulman, its new chief executive, was paid almost £2.6m in his first nine months in the job, and stands to make £5.6m this year if he meets bonus targets – even as the luxury fashion brand cuts up to 1,700 O'Leary, the chief executive of Ryanair, qualified for a bonus of more than €100m earlier this year after the Irish carrier's shares traded above a specified level for a 28th straight day, despite it reporting a 16pc drop in annual profit. Mr Váradi said Wizz Air had no plans to review its London listing despite saying last year that the City had 'lost a bit of its mojo when it comes to capitalism'. He added: 'We know that there is market speculation happening through short sellers, but once we get rid of the uncertainties we will stabilise that and also get more solid results in the stock exchange.'Yes, we are going through some rougher waters right now, but we have a very solid, loyal investor base.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Wizz Air misses profit estimates, delays return of grounded jets
By Joanna Plucinska and Shashwat Awasthi (Reuters) -Wizz Air missed first-quarter profit estimates on Thursday as the budget airline struggles with plane groundings and warned that grounded jets would return to service a year later than expected. The company's shares were down 3.5% by 0734 GMT. It said existing problems with RTX-owned Pratt & Whitney engines, which caused the grounding of some planes, had been compounded by the "poorer than specified" performance of the GTF engines, leading to significantly less time in service before needing inspections. No-one at P&W could immediately be reached for comment. Wizz has struggled in recent years to compete financially with other European carriers as it grapples with the engine challenges. The groundings have limited its ability to increase capacity to meet demand and it has issued two profit warnings in the past year. Wizz said it had 41 aircraft grounded due to GTF engine-related inspections as of June 30, and now expects the affected planes to return to the air in the financial year ending March 2027, a year later than previously predicted. "Our management team has demonstrated a high degree of adaptability in recent years when faced by severe challenges, and this year will likely continue to call on that strength as we refocus our business," CEO Jozsef Varadi said in a statement. Wizz reported an operating profit of 27 million euros ($31.8 million) for the three months to June 30, compared with 87 million projected by analysts polled by LSEG and down 38.3% from a year ago. NEXT GENERATION Varadi told Reuters he was hopeful the next generation of GTF engines would not suffer some of the ongoing issues. "Towards the end of this year, Pratt & Whitney is bringing in the second version of the engine and much improved technology," he said. There was no explicit outlook offered for the year, but some analysts pointed to positive signs, given attempts to cut costs and build a better maintenance partnership with P&W. Still, mid-term growth goals are set to be revised down. "Despite the near-term cuts, we do see some early 'green shoots' in the results around strategy and upcoming structural action being taken," JP Morgan analysts said in a note. Wizz, founded in Hungary, expanded first into western Europe, before opening a base in Abu Dhabi six years ago, and is pinning its hopes for future growth on a major expansion into the Middle East. But it announced its exit from Abu Dhabi last week, blaming recent geopolitical instability for frequent airspace closures and disruptions, which have hit travel demand and meant there was no hope for recovery at the loss-making unit. "No customer likes flying over rockets," Varadi said, adding that demand was impacted by political events in the region, challenges to engines in the hot environment and a lack of access to lucrative India and Pakistan routes. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Business Standard
7 days ago
- Business
- Business Standard
Godrej Enterprises Group's aerospace biz inks pact with Pratt & Whitney
Godrej Enterprises Group's aerospace business has inked a pact with aircraft engines maker Pratt & Whitney for aerospace parts manufacturing. The contract will significantly expand the company's offerings in aircraft engine applications, both in terms of technology and production volumes, it said. The mandate reinforces Godrej's commitment to advancing India's aerospace manufacturing capabilities and aligns with its vision to become a key supplier to global aircraft engine Original Equipment Manufacturers (OEMs), Godrej Enterprises Group said. Pratt & Whitney is a part of the RTX business, and a world leader in the design, manufacture and service of aircraft engines and auxiliary power units. "By leveraging our advanced infrastructure, deep expertise, we are proud to play a role in shaping the future of aviation manufacturing in India. We look forward to strengthening this relationship and expanding our footprint in the global aerospace supply chain," said Maneck Behramkamdin, Business Head, Aerospace business of Godrej Enterprises Group. With this contract, Godrej Enterprises Group said, it continues to expand its presence in precision aerospace manufacturing. Godrej Enterprises Group has a total of around 35,000 sq meters aerospace manufacturing capacity in India with another 48,500 sq meters under development, which is in line with the company's vision to enable and elevate India's manufacturing capabilities at a global level.
News18
7 days ago
- Business
- News18
Godrej Enterprises Groups aerospace business inks pact with Pratt & Whitney
Agency: PTI Last Updated: Mumbai, Jul 24 (PTI) Godrej Enterprises Group's aerospace business has inked a pact with aircraft engines maker Pratt & Whitney for aerospace parts manufacturing. The contract will significantly expand the company's offerings in aircraft engine applications, both in terms of technology and production volumes, it said. The mandate reinforces Godrej's commitment to advancing India's aerospace manufacturing capabilities and aligns with its vision to become a key supplier to global aircraft engine Original Equipment Manufacturers (OEMs), Godrej Enterprises Group said. Pratt & Whitney is a part of the RTX business, and a world leader in the design, manufacture and service of aircraft engines and auxiliary power units. 'By leveraging our advanced infrastructure, deep expertise, we are proud to play a role in shaping the future of aviation manufacturing in India. We look forward to strengthening this relationship and expanding our footprint in the global aerospace supply chain," said Maneck Behramkamdin, Business Head, Aerospace business of Godrej Enterprises Group. Godrej Enterprises Group has a total of around 35,000 sq meters aerospace manufacturing capacity in India with another 48,500 sq meters under development, which is in line with the company's vision to enable and elevate India's manufacturing capabilities at a global level. PTI IAS DRR DRR view comments First Published: July 24, 2025, 12:45 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India.com
14-07-2025
- Business
- India.com
Rs 30000000000: Indian aviation industry may lose huge amount of money due to..., no connection with recent Air India crash
New Delhi: Rating agency ICRA has estimated in its latest report that the total loss of the aviation industry during the current financial year 2025-26 could be between Rs 2 and 3,000 crores. This is in line with the estimate of loss in the last financial year 2024-25. What is the reason behind the losses? The report said that companies may incur this loss due to the continuous increase in aviation fuel prices. During the financial year 2023-24, the companies had a net profit of Rs 1,600 crore. Also, the domestic air passenger traffic growth rate has declined to 7.6 percent. According to the report, the industry saw stable pricing power in FY 2025, stable yields and domestic air passenger traffic growth rate declined to 7.6 percent. Domestic air passenger traffic in June grew 5.1 per cent year-on-year to over 1.38 crore, but declined marginally compared to May, it said in a report released on Friday, July 11. Domestic air passenger traffic estimated at 138.7 lakh in June 2025 Maintaining a stable outlook for the industry, ICRA said supply chain disruptions, including Pratt & Whitney engine problems, continue to impact capacity and costs. Domestic air passenger traffic was estimated at 138.7 lakh in June 2025, up 5.1 per cent from 132.1 lakh in June 2024. However, it saw a marginal decline of 1.3 per cent on a sequential basis. Capacity deployment of airlines in June 2025 was 4.9 per cent higher than June 2024; however, it was 2.3 per cent lower than May 2025. How did India-Pakistan conflict affect Indian aviation industry? The operating costs of the Indian aviation industry are likely to have increased over the past few months (due to flight cancellations and other operational challenges following the India-Pakistan conflict). Rising crude oil prices (due to the Israel-Iran conflict), closure of airspace over Iran and Pakistan (for Indian carriers), likely increase in insurance premiums (after the recent plane crash) and possible hesitancy to travel – potential downside risks need to be monitored closely.
