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

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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.

Six airBaltic Airbus A220s grounded due to lack of spare parts(Opens in a new browser tab)

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.

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Airlines

DOT Proposes New Passenger Compensation Rules for Flight Disruptions

The U.S. Department of Transportation (DOT) has unveiled a major initiative to enhance protections for air travelers affected by flight cancellations or significant delays caused by airlines.

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This Advance Notice of Proposed Rulemaking (ANPRM) seeks public feedback on new measures that could require airlines to compensate passengers and provide necessary services automatically.

Key Proposals by the DOT:

Cash Compensation for Airline-Caused Disruptions
- Airlines may be required to pay passengers at least $200 in cash for flight disruptions caused by circumstances under their control, such as mechanical issues or IT failures.
- A tiered compensation system is being considered:
  - $200–$300 for domestic delays of 3–6 hours.
  - $375–$525 for delays lasting 6–9 hours.
  - $750–$775 for delays exceeding 9 hours.
- The DOT is exploring whether smaller airlines should have different compensation thresholds and whether compensation is needed if passengers are notified weeks in advance of a disruption.
Free Rebooking on the Next Available Flight
- Airlines may be obligated to rebook passengers at no extra cost if a flight is canceled or delayed by at least 3 hours domestically or 6 hours internationally.
- Rebooking options may include:
  - Flights operated by the airline or its codeshare partners.
  - Flights on other carriers with which the airline has a commercial agreement if no suitable options are available within 24 hours.
Provision of Meals, Lodging, and Transportation
- Airlines may need to cover meals, overnight accommodations, and transportation for stranded passengers.
- Minimum reimbursements could be established when services aren’t provided upfront, ensuring passengers can recoup costs even without submitting receipts, up to a defined limit.

The DOT’s proposals draw inspiration from consumer protection frameworks in countries like Canada, Brazil, the UK, and the European Union. Research suggests that EU compensation requirements have successfully reduced the frequency and length of delays, demonstrating the effectiveness of such measures.

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Passengers currently face numerous hurdles when seeking compensation or services, including vague policies, lack of upfront communication, and reliance on in-person requests at airports. The new rulemaking aims to close these gaps by establishing clear, enforceable standards for airlines.

Public input on the proposed measures will shape the final rules. The DOT hopes these changes will create a more accountable and passenger-friendly system, ensuring travelers are better supported during disruptions.

With these proposed rules, the DOT seeks to make airline travel more reliable and fair, setting a new standard for passenger rights in the United States.