More than 75 Indian carriers' aircraft are now grounded owing to maintenance and engine-related concerns, according to aviation consulting firm CAPA.
These aircraft, which make up 10% to 12% of the Indian fleet, are grounded because of maintenance or engine-related problems.
In the second half, they "will have a substantial influence 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 study, which poses major difficulties in the context of an already hostile cost environment and increases losses.
Serious supply chain problems that affect both current and upcoming deliveries have a negative impact on capacity, the report stated, adding that these problems are projected to become more widespread in the fiscal year beginning in April 2023, which will have a negative impact on upcoming deliveries.
Notably, none of the domestic airlines, including two publicly traded firms, IndiGo and SpiceJet, have released any information about the planes' grounding to date.
According to CAPA, further delivery delays may potentially cause financial problems because the income from sale and leaseback financing may not be as high as anticipated.
Due to the necessity to extend the leases of older aircraft in the fleet, which have greater maintenance costs and fuel consumption than the new aircraft that would have replaced them, delays in aircraft deliveries may further increase carriers' unit costs, according to the statement.
The report also predicted that other problems, such as a lack of pilots and engineers, are likely to surface the following year.
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Edited By: Prabhjot Singh Maan ( LinkedIn ).