IndiGo grounds nearly 10% of its fleet due to supply chain issues

India’s largest airline, IndiGo, has been forced to cut capacity due to grounded planes and is looking at options, including wet leasing, to meet demand.

The airline recently revealed the extent of the problem and explained how global supply chain issues are impacting its operations.

IndiGo has revealed that it has been forced to ground more than 30 aircraft due to a lack of engines and spare parts.

The global supply chain problems have negatively impacted the airline’s operations, forcing it to reduce capacity amid soaring passenger demand

During a post-earnings conference call, IndiGo’s chief Pieter Elbers commented,

“One of the key after-effects of the pandemic in the aviation industry is supply chain disruptions in aircraft manufacturing and subsequent shortage of spare engines. This has affected our operations because of grounding of aircraft and has impacted our ability to fully deploy capacity productively.”

The airline said in a statement that it is actively engaged with its OEM (original equipment manufacturer) partners to work on mitigation measures that should “ensure the continuity of our network and operations.”

This is a bigger malaise, affecting not just IndiGo but other carriers as well. Another budget airline, Go First, is operating 31 out of its 59 all-Airbus A320 fleet as more than 40% of its planes are also grounded.

Even as the airline operates fewer flights, it is trying to maintain its schedule by upping the utilization of its active airplanes.

A shortage of aircraft has sent the airlines looking for the next available option to meet operational demands immediately.

IndiGo is wet leasing a few Boeing 777 airplanes from Turkish Airlines to operate on high-density international routes.

While wet leasing is typically more expensive than dry leasing, IndiGo seems to have been left with no other option.

Source: norvanreports.com