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

According to a report by investment information and credit rating agency (ICRA), India’s aviation sector is struggling with an intensive crisis, as the ongoing supply chain disruption and engine -related challenges continue for ground operations.
The recent report stated, “The challenges of the supply and engine failure issue impact industry capacity; Industry is facing challenges and issues supplied to various airlines supplied to various airlines and the supply-series of engine failures for the Whitney (P&W) engines.”
The status has been increased by the global recall of Prat and Whitney (P&W) engines and delay in testing by the manufacturer. As a result, the airlines are forced to lease additional aircraft – through a large -scale wet lease arrangement – to compensate for the ground fleet.
The move has increased lease rental and operating costs, while also reduced fuel efficiency, especially because some replacement are older models acquired on aircraft spots.
Airlines reported to be the worst hit due to irregularities in the supply chain. According to the ANI report, one of these airlines is IndiGo, which is formally designated as Interglobe Aviation Limited, IndiGo has grounded about 70 aircraft of 70 aircraft from its fleet, which is due to faults in the raw materials required to make engine parts according to the ANI report.
Another airline was Go Airlines which was ordered to be liquidated in January 2025 by the National Company Law Tribunal. Go Airlines was severely affected due to defective engines, grounding about half of its fleet in FY14.
In March 2025, some Indian airlines were out of around 133 airlines, representing about 16 percent of the total fleet. Although this figure is equal to the 154 ground aircraft mentioned as of September 30, 2023, it is still a sufficient problem for industry capacity and functioning. These obstacles have directly affected the available seat kilometers (ASKM) – the major metric used to measure the airline capacity.
Despite these obstacles, the industry has got some relief through strong ticket pricing (yield), high passenger load factors (PLF), and partial compensation from engine manufacturers, all of which have helped to reduce some extent to reduce financial stress.
FY2025 was a shortage of staff to reduce operations, especially pilots and cabin crew. These deficiency caused frequent flight delays and cancellations, further ability and inconvenience to passengers.
Although some recovery is estimated in FY 2016, the Indian aviation field remains under pressure, with several challenges that affect its operational efficiency and profitability.