Key Points
- Supply chain issues are still affecting airlines’ efforts to meet sustainability goals and improve services.
- OEMs (original equipment manufacturers) are struggling to meet demand, causing delays in spare parts and maintenance.
- The cost of spare parts has gone up by 30%, and freight rates have doubled.
- Airlines like Air India and Malaysia Airlines are facing big delays in aircraft refurbishments and services.
- Engine servicing times have doubled, and airlines are extending leases on older planes or cutting flights.
- Delays in parts and maintenance are leading to higher costs and potential market share losses.
- There are calls for local manufacturing and stocking of spare parts in India to reduce delays.
Looma News
Airlines worldwide are struggling with serious supply chain issues, which are making it harder for them to meet their sustainability goals and improve service for passengers. These problems, which started after the COVID-19 pandemic, are causing higher costs and delays. While passenger traffic has recovered, airlines are still dealing with challenges as OEMs (original equipment manufacturers) can’t keep up with demand.
Rajeev Gupta, CEO of Indamer Group, an aviation services provider, explained that many airlines and maintenance organizations had to rely on used parts during the pandemic due to shortages of new parts. While things have improved, it still takes at least three to six months to get spare parts. Gupta also mentioned that the price of spare parts has risen by 30%, and shipping costs have doubled, forcing airlines to plan and order parts months ahead of time.
One major example of delays is Air India’s $400 million project to refurbish its fleet of 40 Boeing 777 and 787 aircraft. This project, originally scheduled to begin in December 2022, has now been delayed until 2024, and is expected to continue until mid-2027. The delay is mainly due to issues with seat supplies from Safran, the OEM responsible for providing seats for the Boeing 777. Safran has not commented on the situation.
Subhas Menon, Director General of the Association of Asia Pacific Airlines (AAPA), pointed out that the supply chain crisis is one of the airline industry’s biggest challenges. Airlines are being forced to keep older aircraft longer or, in the case of Malaysia Airlines, cut flights by up to 20% because of shortages in planes, parts, and labor. Malaysia Airlines CEO Izham Ismail shared that engine servicing times have more than doubled, going from 55 days before the pandemic to over 100 days now.
Airlines are considering advanced technologies, like artificial intelligence (AI), as a potential way to address these delays. Jeffrey Goh, CEO of Gulf Air, discussed using AI and advanced analytics to speed up engine service times. He noted that Gulf Air’s Boeing 787 engines now take over 200 days for repairs, with 30% of the engines being sent back to maintenance providers because they didn’t pass required tests.
In India, airlines like Alliance Air and IndiGo are dealing with issues related to Pratt & Whitney engines. Alliance Air currently has six planes grounded, while IndiGo has over 60 planes idle due to engine problems. But the challenges aren’t just with engines. There’s also a shortage of parts like aircraft landing gear and propellers. According to aviation consultant Vishok Mansingh, airlines are focusing more on new aircraft production than on repairs, and this imbalance could last for another two years.
An Alliance Air spokesperson acknowledged the challenges with spare parts availability but reassured that talks with vendors are in progress to resolve the issues. Despite the difficulties, Alliance Air is still operating across 58 destinations and has plans to expand its services in North East India.
The ongoing supply chain disruptions are also leading to calls for local manufacturing and stocking of spare parts in India. Manoj Chacko, Managing Director & CEO of FLY91, emphasized the need for India to develop a strong domestic supply chain to deal with the current disruption. Chacko believes aircraft manufacturers and OEMs need to recognize India’s manufacturing potential and include it in global supply chains.
