 "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.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%