India’s new planes mean lower costs, emissions and insurance

Mumbai: Having the youngest fleet in the world doesn’t simply mean cleaner, more efficient planes. It allows India’s airlines to pay less for insurance, cut maintenance costs, stick to schedules and have fewer cancellations. The average age of the Indian fleet is less than five years right now and this is set to drop even further to four when state-owned Air India Ltd phases out older, leased aircraft as it inducts new planes in 12 months from orders placed fours years ago.
Other carriers such as IndiGo, run by InterGlobe Aviation Pvt. Ltd, and SpiceJet Ltd are freshening their fleets through smart leasing strategies.
Inefficiencies in airport infrastructure are easing, although other costs, such as jet fuel, remain a concern. Aircraft still need to wait their turn to land at peak hours at some airports, burning fuel and causing delays, while the newer airports have put up user charges.
Operating a young fleet “results in superior operating efficiencies, greater customer acceptance, and leads to higher asset utilization and operational excellence,” said Kapil Kaul, India chief of Sydney-based aviation consultancy Centre for Asia Pacific Aviation (Capa).
09/02/11 P.R. Sanjai/Live Mint

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Categories: Indian Aviation- In General Feb 2011