{"id":56223,"date":"2024-02-05T11:54:21","date_gmt":"2024-02-05T06:24:21","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=56223"},"modified":"2024-02-08T12:25:47","modified_gmt":"2024-02-08T06:55:47","slug":"indig-to-dry-lease-qatar-airways-boeing-737-max","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2024\/02\/05\/indig-to-dry-lease-qatar-airways-boeing-737-max\/","title":{"rendered":"IndiGo Likely to Lease Qatar Airways New Boeing 737 MAX Amid P&W Woes"},"content":{"rendered":"\n

GURUGRAM-<\/strong> The largest domestic carrier, IndiGo Airlines (6E)<\/a>, is looking to damp lease five of the Qatar Airways (QR) <\/a>owned Boeing 737 MAX 8 aircraft to support its growing operations and mitigate the grounding of its A320s due to Pratt and Whitney engine issues.<\/p>\n\n\n\n

Insiders familiar with the situation have revealed to ET <\/em>that the airline intends to lease the aircraft from Qatar Airways for a duration of six months, particularly during the bustling summer travel season. These planes, which are currently in operation by the carrier based in Doha, are around three years old.<\/p>\n\n\n\n

\"IndiGo
Photo: avgeekwithlens\/ Harsh Tekriwal<\/figcaption><\/figure>\n\n\n\n

IndiGo to Lease 737 MAX<\/h2>\n\n\n\n

A damp lease, characterized by the lessor supplying the aircraft, cockpit crew, and maintenance to the airline, proves to be a more expensive arrangement compared to a standard lease. <\/p>\n\n\n\n

Qatar Airways will handle maintenance of the aircraft, while IndiGo will provide the cabin crew. This marks IndiGo’s inaugural venture into operating Boeing 737 planes<\/a>, having been an operator of Airbus A320 aircraft<\/a>.<\/p>\n\n\n\n

IndiGo’s unconventional decision stems from the challenge of securing enough used aircraft for short-term leases, as the availability of planes in the leasing market has significantly diminished.<\/p>\n\n\n\n

The airline has been compelled to ground approximately 75 Airbus A320 Neo aircraft until December due to a recall by US-based aerospace major RTX. The recall involves inspecting 1,000 P&W engines <\/strong>after the discovery that powder metal contamination could potentially result in the cracking of certain engine components.<\/p>\n\n\n\n

\"IndiGo
Photo: AbduRahman N<\/figcaption><\/figure>\n\n\n\n

Huge Impact on Indian Carrier<\/h3>\n\n\n\n

IndiGo, boasting a fleet of 135 planes, possesses the largest potentially impacted fleet. The airline has disclosed that the capacity growth during the current January-March period will experience a 12% reduction compared to the average 15-19% growth witnessed in previous quarters.<\/p>\n\n\n\n

In the preceding year, the airline engaged in wet leasing 11 Airbus <\/a>A320Ceo (the older version of the aircraft) and was in negotiations for an additional 10 on a dry lease. However, this endeavor did not materialize, given the substantial increase in leasing prices resulting from a scarcity of available used planes.<\/p>\n\n\n\n

The scarcity of used planes has become more pronounced as airlines worldwide retain aircraft they had intended to retire. This retention is due to a shortage in capacity arising from supply chain constraints and ongoing issues with engines.<\/p>\n\n\n\n

\"\"
Photo: Dirk Grothe<\/figcaption><\/figure>\n\n\n\n

Shortage of Used Planes<\/h3>\n\n\n\n

“A person involved in the process stated, ‘No lessor is willing to provide planes on a dry lease for a short six-month period. Obtaining well-maintained older aircraft has become challenging due to supply chain issues. Consequently, various options are being explored. IndiGo is cautious about entering a scenario where a leased plane might encounter issues.’<\/p>\n\n\n\n

Recent restrictions on expanding the production of Boeing 737 MAX aircraft following the Alaska Airlines (AS)<\/a> incident will further constrict the supply situation.<\/p>\n\n\n\n

Analysts at Ishka, specializing in aircraft valuation, noted in December that only 26 Airbus A320 Ceo aircraft were available for rental, with the market value of a 5-year-old A320Ceo rising by 22% compared to January 2022.”<\/p>\n\n\n\n

IndiGo, formerly accustomed to returning aircraft after six years, is now compelled to retain them for an extended duration to address the supply gap.<\/p>\n\n\n\n

Sidhharth Nakhende, Head of Airline Analysis at Ishka, mentioned that although IndiGo has effectively navigated the challenges stemming from the global grounding of aircraft due to P&W engines, the associated costs will be substantial owing to heightened demand for alternative aircraft.<\/p>\n\n\n\n

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IndiGo Airlines Slammed by Shark Tank India’s Judge Anupam Mittal Over No AC, Flight Delay<\/a><\/blockquote>