More than 75 aircraft operated by Indian carriers have been grounded, due to maintenance and engine problems.
According to aviation consulting company CAPA, more than 75 aircraft of Indian airlines are currently grounded because of maintenance and engine-related issues.
Between 10 and 12 percent of India’s fleet, these aircraft are grounded due to maintenance or engine-related issues. They “will have a significant influence on financials” in the second half, claims CAPA’s India Mid-Year Outlook 2023, which was released on Tuesday.
According to the report, there are already more than 75 aircraft on the ground, which creates significant challenges in the context of an already unfavourable cost environment and raises losses.
The report noted that serious supply chain issues have a detrimental effect on capacity and have an effect on both current and future deliveries. It also predicted that these issues will worsen in the fiscal year beginning in April 2023, which will have a detrimental effect on future deliveries.
Notably, no domestic airlines, including IndiGo and SpiceJet, two publicly traded companies, have yet to make any announcements regarding the grounded planes.
Further delivery delays, according to CAPA, might potentially result in financial issues because the revenue from sales and leaseback finance might not be as large as anticipated.
Delays in aircraft deliveries may further raise the unit costs for carriers because it is necessary to extend the leases of older aircraft in the fleet, which have greater maintenance expenses and fuel consumption than the new aircraft that would have replaced them.
The report also indicated that additional issues, such as a shortage of pilots and engineers, would probably manifest themselves the following year.