More than 75 planes of Indian carriers grounded due to engine issues

Corrective and Preventive Actions (CAPA) , an aviation consultancy firm on Tuesday said that more than 75 planes of the Indian carriers have been grounded due to maintenance and engine related issues.

According to a report, the planes are grounded due to maintenance or engine-related issues.

CAPA in its India Mid-Year Outlook 2023 said, "These will have a significant impact on financials in the second half."

More than 75 aircraft are currently grounded and are creating serious challenges as these planes together account for 10-12 per cent of the Indian fleet. This comes at a time when there is a hostile cost environment and contributing to increased losses.

The report also said that the current and future deliveries have been affected due to issues with capacity which was severely impacted by the supply chain issues. It also added that these issues are likely to proliferate in the fiscal starting April 2023. This in turn will impact the future deliveries.

Delays in the future deliveries could also reflect liquidity issues as the income from the sale and leaseback financing may be less than planned, said CAPA. IF there are delays in the future deliveries then this may result in increased unit costs for carriers as there is a need to extend the leases of older aircrafts in the fleet that would cost higher maintenance and use more fuel than the aircraft it is replacing.

However, there has been no official statement from the domestic airlines including IndiGo and SpiceJet regarding this grounding of aircraft.

By next year we may also face non-supply issues like shortage of pilots and engineers.

With Inputs from PTI

Published on: Tuesday, November 01, 2022, 06:13 PM IST