Indian airline companies increasingly leaning towards local suppliers for non-critical aircraft components: Report

Executives from Air India and IndiGo noted that the practice of sourcing components domestically is already being followed in the United States, and it is gaining traction in the Indian aviation sector, offering cost and time advantages for the carriers.

Substantial aircraft orders made by Indian airlines are expected not only to result in a substantial fleet but also to empower domestic carriers to negotiate favourable terms with lessors for aircraft leasing and the usage of local non-critical parts.

This strategic shift is expected to yield savings in cost exceeding 40%, Mint reported.

Industry executives, speaking at the Aero MRO India 2023 event in New Delhi, highlighted that the procurement of certain parts will also witness a significant reduction in availability time, decreasing from six months to under 30 days.

Air India's Chief Technical Officer, Sisira Kanta Dash, emphasised the challenges of importing non-critical items, such as printer paper and stickers, for aircraft use. He questioned the necessity of importing such items and advocated for the acceptance of local alternatives to save costs, said the report.

Dash revealed efforts to include clauses in leases specifying acceptance of non-critical parts, navigating the approval process.

According to the report, IndiGo initiated a process two years ago to obtain approvals from the Directorate General of Civil Aviation for purchasing non-critical, non-structural items.

The airline successfully incorporated indigenous parts for its aircraft, highlighting a shift towards using locally sourced components.

Parichay Datta, Vice President and Deputy Head of Engineering at IndiGo underscored the airline's proactive approach to identifying and manufacturing non-critical items in-house, according to the Mint report.

IndiGo has experienced delays in receiving small parts from OEMs (original equipment manufacturers) in the past, prompting the airline to embrace this strategy.

Datta noted that regulatory authorities have been supportive, granting approvals for the incorporation of non-structural, non-critical items within the cabin, added the Mint report.