Aviation consultancy firm CAPA said on Tuesday that more than 75 Indian carrier planes are currently grounded due to maintenance and engine issues.

These planes, which make up around 10-12% of India’s fleet, are grounded due to maintenance or engine issues. “These will have a significant impact on the financials in the second half of the year,” CAPA said in its India Mid-Year Outlook 2023 released on Tuesday.

According to the report, more than 75 aircraft are currently grounded, which creates serious challenges in the context of an already hostile cost environment and contributes to the increase in losses.

Capacity has been impacted by serious supply chain issues affecting current and future deliveries, he said, adding that these issues are likely to proliferate in the fiscal year beginning April 2023, which, in turn, will impact future deliveries, according to the report.

Significantly, none of the national airlines, including two publicly traded companies – IndiGo and SpiceJet – have so far made a public announcement about the planes being grounded.

According to CAPA, delays in future deliveries could also translate into liquidity issues, as revenues from sale-leaseback financing could be lower than expected.

Delays in aircraft deliveries can also result in increased unit costs for carriers 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 planes that would have replaced them, he said.

The report also states that non-supply issues are also expected to emerge next year, such as shortages of pilots and engineers.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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