Supply chain shortages continue to cripple aircraft deliveries, impacting growth and business projections, especially in high-growth markets like India, senior officials at the IATA AGM said on Monday.
Aircraft makers like Boeing and Airbus are sitting on world-wide pending orders of more than 17,000 commercial jets, including around 1,500 from just three Indian carriers — IndiGo, Air India and Akasa Air. According to IATA, the waiting period for new aircraft deliveries is currently estimated at 14 years.
Pieter Elbers, CEO, IndiGo and chair, IATA Board of Governors 2024-2025, said, “Post Covid-19, we thought there will be a solution in 6-12 months, but it is 25 months now, and there is no end of sight, which I would say is a missed opportunity in terms of addressing the market demand. This is, especially, true in high-growth markets like India.”
Air India CEO Campbell Wilson had previously warned that the aircraft shortage is hampering airline growth to persist for 4-5 years more, with pain points being engines for narrow-body jets, business and first-class seats and some elements of aircraft fuselages.
The delays have already forced Air India to squeeze out the best resources from the available fleet, involving refurbishment of jets that are 15-17 years old and desperately needing interior upgrades, especially the entertainment system and seats.
The Tata Group-run Air India, which has a fleet of 300, is expecting FY26 to be a flat year as far as the operating fleet is concerned. It has blamed delays in aircraft deliveries for the constraints in capacity addition.
Supply chain disruption has been impacting not just the manufacturing of new aircraft but also the service needs of existing planes, rendering many to remain non-operational. IndiGo has 40 grounded planes, while SpiceJet is estimated to have 30 grounded planes.
Willie Walsh, director general, IATA, said, “The shortage has led to never-seen-before seat factors ever seen in the industry. With an average of 84%, it tells you that customers are not getting the opportunity to travel when they want to. We thought that the 81% load in 2019 will be the highest, but we have gone way beyond that.”
Airbus, the world’s leading aircraft maker, warned airlines last month that delivery delays will persist for another three years. The company said it can reach the goal of production of 75 aircraft a month only in 2027, from the current 60 per month.
Boeing delivered 45 aircraft in April, slightly higher than 41 deliveries in March. Boeing is still struggling to reach its FAA-approved production rate of 38 737 MAX aircraft per month, producing only 31 MAX aircraft in April.