IndiGo Grounds 30 Aircraft Due To Global Supply Chain Disruptions
November 07, 2022
IndiGo said on Monday it had grounded around 30 aircraft, or around 10% of its fleet, due to global supply chain disruptions.
"While it is our immediate priority to deploy adequate capacity to serve our customers, we are actively engaged with our OEM (original equipment manufacturer) partners to work on mitigation measures that should ensure the continuity of our network and operations," the company said.
The airline had a fleet of 279 aircraft as of the end of September.
IndiGo said it was evaluating slowing down re-deliveries through lease extensions, exploring the re-induction of aircraft into the fleet, and evaluating wet lease options to mitigate the disruptions. _________________ 11000 posts (and counting) on Airliners-India.
IndiGo evaluates ACMI, lease extensions to boost capacity
IndiGo is looking at wet-leasing aircraft, extending leases, and postponing redeliveries to mitigate capacity constraints caused by "supply chain disruptions" in aircraft manufacturing and a subsequent shortage of spare engines worldwide, says Chief Executive Officer Pieter Elbers.
Speaking during a recent earnings call on the airline's 2Q FY2023 results ending September 30, 2022, he said: "One of the key after-effects of the pandemic in the aviation industry is the supply chain disruption in aircraft manufacturing and subsequent shortage of spare engines worldwide. This has affected our operations due to the grounding of aircraft and has impacted our ability to fully deploy capacity productively. However, we are looking at various options to mitigate the shortfalls in our capacity deployment, such as slowing down the redeliveries, exploring the introduction of aircraft into the fleet, and adding capacity on an ACMI basis." He clarified: "One of the things we have been doing is extending some of the leases, postponing some of the redeliveries. And another element which is under discussion - we're still in the final stages of clarifying that - is a possible wet lease operation."
While Elbers did not mention the number of aircraft grounded, an unnamed IndiGo spokesperson told the Press Trust of India (PTI) the airline had around 30 aircraft on the ground. "While it is our immediate priority to deploy adequate capacity to serve our customers, we are actively engaged with our OEM partners to work on mitigation measures that should ensure the continuity of our network and operations," the spokesperson said. "As we work on various cost-efficient counter-measures with our OEM partners, the endeavour is to minimise the economic impact of around 30 AOG (Aircraft on Ground) resulting from this global disruption," the spokesperson added.
The airline's last quarter results showed its capacity increased by 75%, matched by an increase in passenger numbers of 75.9% to 19.7 million.
Elbers told analysts the airline expected the capacity constraints to take some time to resolve. "It will take some time. That's why our capacity guidance for this year is in the range of plus 13% to plus 17% compared to pre-Covid. We're not giving any capacity guidance for next year yet. We would still like to sort of finalise where we are ending this year."
As of September 30, 2022, IndiGo's fleet of 279 aircraft included twenty-six A320-200s, 149 A320-200Ns, sixty-eight A321neo, thirty-five ATR72-600s, and one A321-200(P2F); a decrease of three passenger aircraft during the last quarter.
Elbers said a second A321-200(P2F) freighter would arrive in November and be operational by December 2022. Another two are expected in 2023. "We have two others in the pipeline, which will make it four in total, but the other two are due at the beginning of the next financial year." He added: "These dedicated freighter operations add a new dimension to our existing [belly] cargo operations and offer a new product segment to our customers. These aircraft are on operating leases, similar to our existing Airbus A320 Family. This not only gives an added advantage on our costs but also enables us to uniquely service markets like China, Vietnam, the Middle East, and certain CIS countries [Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan]."
For the quarter ending September 2022, IndiGo reported a net loss of INR15.8 billion rupees (USD194 million) - including a foreign exchange loss of INR12 billion (USD147 million) - compared to a net loss of INR10.6 billion (USD130.4 million) for the quarter ending June 2022. Depreciation of the rupee and higher jet fuel prices continued to be the major headwind for its profitability and remained a concern, said Chief Financial Officer Gaurav Negi.
The airline had total cash reserves of INR196.6 billion (USD2.4 billion), a net increase of 3.1%. It ended the quarter with total debt of INR409.5 billion (USD5 billion), including a capitalised operating lease liability of INR361.3 billion (USD4.4 billion). This, Elbers said, was mainly due to 21 aircraft that had joined the fleet and the incremental foreign exchange impact. _________________ 11000 posts (and counting) on Airliners-India.
IndiGo can wet lease Turkish Boeing 777 planes for a yr as govt eases rule
November 27, 2022
IndiGo can wet lease Boeing 777 aircraft from Turkish Airlines for a year following the relaxation of the applicable norm by the civil aviation ministry.
Under the prevailing rule, an Indian carrier can induct an aircraft on a wet lease for three months, subject to a one-time extension of an additional three months. Such leases are permitted in emergency situations only. These include unexpected grounding of planes, among others.
IndiGo, which plans to wet lease three Boeing 777-300ER aircraft from Turkish Airlines, had asked the civil aviation ministry to approve a two-year lease instead of just six months. This submission has been partially accepted by the government.
In a statement, IndiGo said it has received a communication conveying the aviation ministry's permission to Indian carriers to wet lease aircraft for a period of six months, extendable by another six months. Such relaxation shall be available to all Indian carriers on their specific requests and the ministry will consider the same based on the international destinations that the airline intends to operate.
"IndiGo is currently working on finalising the contract for the wet lease," it said. _________________ 11000 posts (and counting) on Airliners-India.
IndiGo can wet lease Turkish Boeing 777 planes for a yr as govt eases rule
I the interim, they are going to be operating DEL/BOM - IST wtih A321NEOs. These will be nine -hour flights with a refueling halt at Ras Al Kaimah.
I'm booked on one of these ghastly flights next week. Shall pen a trip report if possible. _________________ I don't know which is the more pampered bunch : AI's widebodies (the aunties) or Jet's widebodies (the planes).
The aircraft, to be registered as TC-LKD is Turkish and under Turkish Airlines but exclusively for IndiGo’s use. Unlike the existing B77W, which comes with 28 Business and 372 Economy seats, the new aircraft is likely to come in with just seven Business class seats and a massive economy cabin with 524 seats in economy class. It is unclear if Turkish Airlines would continue to sell the seven Business class seats or if they will be used as crew rest areas or closed for sale — the economics of having a dedicated crew for seven passengers may not work very well.
IndiGo's 531-seater aircraft will probably set a record for the highest number of seats for an airline from India for a scheduled commercial service.
The other question that should be answered soon is if there will be IndiGo livery Boeing aircraft with Indian registration. _________________ 11000 posts (and counting) on Airliners-India.
IndiGo expects nearly 50 aircraft in the next 12 months
IndiGo is targeting 350 aircraft by March 31, 2024, up from the current 304 planes, as its CEO pursues what he calls "the next level of growth."
"The Indian (aviation) market has a new momentum. Probably it was a bit boiling prior to Covid, which stopped everything, but I would say now, that post-Covid, it (aviation growth) is hand in hand with the growth of the Indian economy and it is really moving forward," said CEO Pieter Elbers said in a recent Press Trust of India interview.
"IndiGo is in a good place, we operate 300 aircraft, higher than any other operator in India. No airline in India has ever reached that number of aircraft in operation and we still have a little short of 500 aircraft to be delivered to us within the next decade from an exisiting order, which means a steady flow of aircraft coming to us."
IndiGo presently operates 304 aircraft according to the ch-aviation fleets advanced module. The existing fleet includes twenty-two A320-200s, 161 A320-200Ns, two A321-200(P2F)s, seventy-nine A321-200NX, thirty-nine ATR72-600s, and one wet-leased B777-300(ER). The latest order and delivery data from Airbus shows that IndiGo has 487 aircraft on order, including 108 A320-200Ns and 307 A321-200Ns. IndiGo expects to wrap up the 2022/23 Indian fiscal year on March 31 with 305 aircraft. ch-aviation has also recently reported on comments by French Finance Minister Bruno Le Maire, who said that IndiGo is eyeing another Airbus order at the upcoming Paris Air Show, potentially for "hundreds of planes."
"We're probably somewhere in the top three to five airlines in the world when it comes to outstanding fleet orders," said Elbers. "This year, we will welcome around 80 million passengers. Next year, that will be in the range of 100 million. The (aviation) market is expected to grow at probably twice the GDP growth for several years to come, and with that, it should probably double by the end of the decade."
IndiGo received two aircraft from Airbus in the first two months of 2023, including an A320neo in late January, and an A321neo in mid-February. Elbers said IndiGo is now operating approximately 1,800 flights per day and that the airline expects to grow its network by around 15% this calendar year, including launching routes to new international destinations such as Nairobi Jomo Kenyatta and Jakarta Soekarno-Hatta.
_________________ 11000 posts (and counting) on Airliners-India.
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