Indian aviation sector continues to face disruptions in supply chain: ICRA report | India-Business News

India’s aviation sector is grappling with a deepening disaster, as ongoing supply chain disruptions and engine-related challenges proceed to floor operations, in accordance to a report by the Investment Information and Credit Rating Agency (ICRA).
The current report mentioned, “Supply-chain challenges and engine failure issues impact industry capacity; the industry has been facing supply-chain challenges and issues of engine failures for the Pratt and Whitney (P&W) engines supplied to various airlines.”
The scenario has been exacerbated by the worldwide recall of Pratt & Whitney (P&W) engines and delays in testing by the producer. As a outcome, airways have been compelled to lease further plane—largely by means of moist lease preparations—to compensate for the grounded fleet.
This transfer has pushed up lease leases and working prices, whereas additionally decreasing gas effectivity, significantly as a result of a few of the substitute plane are older fashions acquired on spot leases.
The report additional talked concerning the airways hit worst due to the irregularities in the supply chain. One of these airways is IndiGo, formally named as InterGlobe Aviation Limited, IndiGo grounded shut to 70 plane from its fleet due to defects in uncooked supplies required for making engine components, in accordance to an ANI report.
Another airline was Go airways which was ordered by the National Company Law Tribunal to be liquidated in January 2025. Go Airlines was among the many severely affected due to defective engines, grounding practically half of its fleet in FY2024.
In March 2025, round 133 plane operated by some Indian airways have been out of service, representing practically 16 per cent of the entire fleet. While this determine is in par from the 154 grounded plane reported as of September 30, 2023, it nonetheless poses a considerable downside to the business’s capability and functioning. These constraints have straight influenced the Available Seat Kilometre (ASKM)—a key metric used to measure airline capability.
Despite these hurdles, the business has discovered some aid by means of robust ticket pricing (yields), excessive passenger load elements (PLF), and partial compensation from engine producers, all of which have helped cushion the monetary pressure to a sure extent.
Compounding the operational difficulties in FY2025 have been employees shortages, particularly of pilots and cabin crew. These shortages led to frequent flight delays and cancellations, additional straining capability and inflicting inconvenience to passengers.
Though some restoration is anticipated in FY2026, the Indian aviation sector stays underneath stress, contending with a number of challenges that proceed to influence its operational effectivity and profitability.