More passengers, fewer planes: Indian aviation faces supply crunch

KOCHI: Despite placing orders and waiting for deliveries, Indian airlines are struggling to get new aircraft. This is affecting the country's aviation sector, as the number of air travellers continues to rise every day. However, airlines do not have enough aircraft to increase their services to meet the growing demand.

Boeing of the US and Airbus of France are the two major aircraft manufacturers that dominate the global market. Over the past three years, Indian airlines IndiGo, Air India and Akasa Air have placed orders for 1,760 passenger aircraft. However, Boeing and Airbus have delivered only a small fraction of these orders.

This is not a problem faced by India alone. Globally, orders for 17,000 to 18,000 aircraft are still pending. Airbus has received the highest number of orders. However, only 547 new aircraft were delivered worldwide up to September this year.

The crisis at Boeing and Airbus began during the COVID period, when production slowed down. Shortages of engines and raw materials, along with a lack of skilled workers, made the situation worse. Smaller aircraft manufacturers are also facing difficulties.

As a result, airlines are being forced to upgrade their existing older aircraft and keep them in service for longer. However, maintenance costs are very high. Older aircraft also pose safety concerns.

Aircraft manufacturing in India

The Centre has included aircraft manufacturing under its 'Make in India' initiative. Hindustan Aeronautics Limited (HAL) has announced plans to set up a manufacturing unit in collaboration with Brazilian aircraft manufacturer Embraer.

Impact on airlines

1. Airlines are unable to fully benefit from the rise in passenger numbers.
2. They are forced to lease aircraft at higher rates, reducing their profits.
3. Maintenance costs for older aircraft are high, while delays in new deliveries add to their expenses.

Air travellers in India

2015: 12 crore
2025: 25 crore