Indian carriers could incur up to $1.2 bn per year for 200 grounded planes

Over 25 per cent of the aircraft fleet operated by Indian carriers will be out of commission by March 2024, potentially resulting in an annual cost ranging from $1 billion to $1.2 billion, according to assessments made by CAPA India.

The standard monthly cost an active aircraft incurs is about $1 million and if it’s grounded, the cost comes down to $0.5 million, according to CAPA’s ‘conservative’ estimates.

"With planned replacement capacity, a conservative estimate of fixed airline cost for around 100 grounded aircraft is $500-600 million (prior to compensation from equipment maker)," CAPA India noted. By March 2024, about 196-201 out of 789 aircraft with Indian carriers are expected to be grounded, primarily due to supply chain issues. 

 

"With 200 aircraft expected to be grounded (with possibly more in 2024-25)…there is a possibility that airline risks could evolve into industry risks, and potentially country risks," CAPA India mentioned.