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.
