Airlines
Over 75 planes of Indian carriers grounded due to engine issues
More than 75 aircraft operated by Indian carriers have been grounded because of maintenance and engine-related issues
More than 75 aircraft operated by Indian carriers have been grounded because of maintenance and engine-related issues, according to aviation consulting firm Corrective and Preventive Actions (CAPA) on Tuesday. Ten to twelve percent of the Indian fleet consists of these aircraft.
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In the second half, these “will have a significant impact on financials,” according to CAPA’s India Mid-Year Outlook 2023, which was published on Tuesday. More than 75 aircraft are currently grounded, according to the report, which poses serious difficulties in the context of an already hostile cost environment and increases losses.
It added that serious supply chain problems have a negative impact on capacity and have an effect on both current and upcoming deliveries. These problems are also likely to spread throughout the fiscal year beginning in April 2023, which will have an adverse effect on upcoming deliveries.
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Notably, none of the domestic airlines, not even IndiGo and SpiceJet, two listed companies, have made any public statements about the planes’ grounding to date. According to CAPA, the income from the sale and leaseback financing may be less than anticipated, which could result in liquidity issues as a result of future delivery delays.
Due to the need to extend the leases of older aircraft in the fleet, which have higher maintenance costs and fuel consumption than the new aircraft that would have replaced them, delays in aircraft deliveries may also result in higher unit costs for carriers. A lack of engineers and pilots, for example, is predicted to occur next year, according to the report.
Airlines
A New Player Takes Off: Embraer Poses a Formidable Challenge to Boeing
In the midst of ongoing challenges faced by Boeing and the aviation industry at large, Brazilian aircraft manufacturer Embraer has been thrust into the spotlight.
Recent reports suggesting that Embraer is eyeing the development of a next-generation narrow-body aircraft have sparked intrigue and speculation. However, the company has swiftly moved to quash such rumors.
Internal assessments conducted within Embraer have indeed highlighted the company’s impressive technological prowess and manufacturing capabilities. These findings have led some to speculate about the potential for Embraer to enter the narrow-body aircraft market, traditionally dominated by industry giants Boeing and Airbus.
In light of Boeing’s recent challenges, including the protracted grounding of its 737 MAX jets and leadership upheavals, some industry analysts have suggested that there may be an opportunity for smaller players like Embraer to disrupt the market duopoly. Airbus, too, has plans to introduce a new narrow-body aircraft in the future, further intensifying competition in this space.
However, despite the potential openings created by Boeing’s troubles, Embraer appears cautious about overextending itself. The company is currently focused on maximizing the success of its existing portfolio, which includes the innovative E2 aircraft series.
Additionally, the emergence of alternatives such as China’s Comac C919 adds another layer of complexity to the competitive landscape. While the C919 has thus far secured orders primarily from Asian carriers, Boeing’s challenges could prompt airlines worldwide to explore alternative options.
Airlines
Air India Revised Baggage Rules for Domestic Flights
Air India, one of India’s leading airlines, has implemented significant changes to its baggage policies, affecting travelers across various fare classes.
Effective May 2, 2024, the airline has rolled out a revised baggage allowance scheme, marking a reduction in the permitted weight limits for most fare categories. Under the updated guidelines, passengers booking economy and business class tickets will notice a decrease in their baggage allowance by 5 to 10 kilograms compared to previous allowances.
These adjustments reflect Air India’s response to market dynamics and regulatory requirements. In the Economy Comfort category, encompassing S, T, U, and L fare classes, travelers will now have a baggage allowance of 15 kilograms, down from the previous 20 kilograms. As reported by livefromalounge.
Similarly, passengers availing themselves of Economy Comfort Plus, including G, W, V, Q, and K fare classes, will see their baggage allowance reduced to 15 kilograms from the earlier 25 kilograms.
However, not all fare classes are subject to reductions. Economy Flex passengers, represented by the H, M, B, and Y fare classes, will maintain their previous baggage allowance of 25 kilograms.
In the business class segment, changes are also evident. Business Comfort Plus, consisting of Z and J fare classes, will now offer a baggage allowance of 25 kilograms, down from the prior 35 kilograms. Meanwhile, passengers booking Business Flex tickets under the D and C fare classes will have a revised baggage allowance of 35 kilograms, compared to the previous 40 kilograms.
For passengers planning their upcoming journeys with Air India, it is essential to review the updated baggage policies to ensure compliance and avoid any inconvenience during their travel experience.
Airlines
These are two airlines that placed the largest orders for Comac
China Southern Airlines has made a significant move in the aviation industry by placing a monumental order for 100 Comac C919 aircraft.
Marking a pivotal moment in the commitment of state-owned Chinese airlines to domestically developed planes. The deliveries are set to commence this year and continue until 2031.
The order holds a considerable value of USD 9.9 billion; however, China Southern will benefit from substantial discounts provided by the manufacturer, Commercial Aircraft Corporation of China. This announcement comes closely after Air China’s recent order for 100 C919s, albeit in the Extended Range variant.
China Southern’s decision to invest in the C919 reflects its strategic vision to address capacity demands, achieve fleet balance, and enhance its overall strength and brand image.
By incorporating these advanced aircraft into its operations, the airline aims to alleviate pressure on capacity, optimize its fleet structure, and bolster its competitive position in the market.
As China continues to assert itself in the global aviation industry, the significant orders placed by its state-owned carriers underscore the country’s commitment to domestic aviation manufacturing.
With both China Southern Airlines and Air China making substantial investments in the Comac C919, the stage is set for these domestically developed aircraft to play a pivotal role in shaping the future of Chinese aviation.