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.
“These will have a significant impact on financials in the second half,” CAPA said in its India Mid-Year Outlook 2023 released on Tuesday.
MUMBAI:
Aviation consultancy firm CAPA said on Tuesday said that more than 75 planes of Indian carriers are currently grounded due to maintenance and engine-related issues.These planes, which account for around 10-12 per cent of the Indian fleet, are grounded due to maintenance or engine-related issues.
“These will have a significant impact on financials in the second half,” CAPA said in its India Mid-Year Outlook 2023 released 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.
The report also said that non-supply issues are also expected to emerge next year such as shortages of pilots and engineers.