According to aviation consultancy firm CAPA, more than 75 planes of Indian carriers are currently grounded due to maintenance and engine issues.
These planes, which make up about 10% to 12% of the Indian fleet, are grounded due to maintenance or engine problems. “These will have a significant impact on financials in the second half,” CAPA stated in its India Mid-Year Outlook 2023, which was published on Tuesday.
As per the report, more than 75 aircraft are currently grounded, creating serious challenges against the backdrop of an already hostile cost environment and contributing to increased losses.
The capacity has been impacted by serious supply chain issues impacting current and future deliveries, it said, adding that these issues are likely to proliferate in the fiscal starting April 2023 which, in turn, will impact future deliveries, the report said.
Significantly none of the domestic airlines, including two listed companies IndiGo and SpiceJet have so far made any public announcement on the grounding of the planes.
According to CAPA, delays in future deliveries could also reflect in liquidity issues as the income from sale and lease back financing may be less-than planned.
Delays in aircraft deliveries may 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 cost and fuel consumption than the new aircraft that would have replaced them, it said.
According to the report, non-supply issues such as pilot and engineer shortages are also expected to emerge next year.