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.
