International Air Transport Association (IATA) said the airline industry is mulling legal options over delayed aircraft deliveries driven by global supply chain disruption. IATA Director General Willie Walsh on Monday said the delays have severely impacted the growth of the industry, but it is eyeing to work collaboratively with the aircraft makers to find a solution, Reuters reported.
Commenting on the impact of the tariffs hike, Walsh highlighted that the airlines would be against any attempt made by the plane makers to increase prices.
The issue of delayed flights is a long-standing issue within the global aviation industry, especially due to issues faced by manufacturers like Boeing and Airbus. Boeing has been under the radar of the US Federal Aviation Administration’s (FAA) due to safety concerns with its commercial aircraft. On the other hand, issues detected in Pratt & Whitney’s engines have also contributed to the delays.
When it comes to the Indian airlines, almost all the major players, including Air India, SpiceJet, Akasa Air and IndiGo, have flagged that the delay of aircraft by Boeing and Airbus has slowed their expansion plans.
While highlighting the Tata Group’s vision to make Air India a world-class airline, Tata Sons chairman N Chandrasekaran had flagged delayed plane deliveries as a factor holding them back.
“...You all need to help me by pushing Boeing and Airbus to deliver me the planes,” Tata Sons chairman N Chandrasekaran had earlier said at an event.
Financially and legally troubled Indian airline SpiceJet, which is gradually making a comeback, too, had a similar complaint.
“We placed an order for 200 aircraft with Boeing in 2017 and received 13 aircraft...we will talk to Boeing to restart deliveries,” SpiceJet chairman and MD Ajay Singh said, according to Business Standard.
On the original equipment manufacturer (OEM) side, order books are stacked and sold out until the next decade, but supply chain issues have remained a big concern when it comes to speeding up the production, a report titled Demand & Disruption by KPMG highlighted.
