Airlines stuck with idle planes

Mumbai: Having cut down on flights, Indian carriers are now faced with a new problem: What to do with the idle aircraft?
The worldwide softness in the sector has ensured there are few takers for these aircraft; those who had leased the aircraft to Indian carriers will invoke a hefty penalty if the machines are sent back to them.
Reeling under record jet fuel prices and rock-bottom fares, this is the latest thorn in the side of Indian airlines. None is yet to arrive at a solution.
The problem, to be sure, is not small. Out of the 300 odd aircraft with these airlines, there is an excess capacity of 15 per cent, or roughly 45, experts reckon.
SpiceJet, for instance, has two planes idle after it cut 20 flights. Kingfisher Airlines and Deccan have cut back 17 and 20 flights, respectively, mostly in the South, which may result in 3-4 planes idling, though this figure could not be confirmed. Air India has withdrawn frequencies on routes like Mumbai-Chennai-Mumbai and could curtail some international flights.
Given that two out of their three planes are on lease, the obvious thing to do would be to return the extra planes. But experts said such a move will attract penalties.
02/07/08 Ranju Sarkar/Business Standard

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Categories: Indian Aviation- In General Jul 2008