Indian Aviation's Engine Bottleneck

DECODE THE NEWS

Grounded Aircraft, Lost Revenues: Engine Repair Woes Disrupting Indian Aviation

What?

India’s airlines are getting global attention with their massive aircraft orders. IndiGo, on June 1, 2025, doubled its widebody Airbus A350 order to 60 aircraft by converting a part of its purchase rights into a firm order.

In April 2024, the airline had placed its first-ever order for 30 A350s, along with purchase rights for 70 more.

Despite this, the aviation industry is struggling with a more grounded problem — literally. Hundreds of aircraft are sitting idle, awaiting engine repairs that just aren't coming fast enough.

According to rating agency ICRA’s recent report, as of January 30, 2025, InterGlobe Aviation Ltd (IndiGo) had about 60 to 70 aircraft grounded, largely due to ongoing issues with Pratt & Whitney engines, particularly the contamination of powder metal used in critical engine components.

Why?

At the heart of the issue lies a global bottleneck in engine maintenance, particularly involving Pratt & Whitney engines.

These engines, powering many of the Airbus A320neos flown by Indian carriers, are failing far sooner than expected, and the repair turnaround is painfully slow.

The consequences? Operational disruptions, grounded aircraft, lost revenue.

So, how are Indian airlines keeping their businesses aloft despite grounded aircraft?

IndiGo, for instance, has brought in aircraft on wet lease from European companies to maintain flight schedules.

“IndiGo had Airbus deliveries coming in on schedule, and they supplemented that by wet leasing and even dry leasing aircraft. They’re trying to balance their grounded capacity by bringing in aircraft from wherever they can,” CS Tomar, aviation expert, told The Core.

But with engine repairs lagging and delivery timelines stretched thin, is this patchwork strategy sustainable — or just a temporary fix?

We take you inside how Indian carriers are battling a global engine crisis, the cost of grounded jets, and whether these short-term solutions are enough to keep them flying.

BUILD ON BLOCKCHAIN

SEWA Is Rewriting ‘Herstory’, This Time on Blockchain

What?

Self Employed Women’s Association (SEWA), the 53-year-old union of informal women workers, established in 1972, is leveraging blockchain technology 

SEWA has always led from the front in championing worker rights and assisting their collective struggle for social justice, equality, and fair treatment.

Recently, it went a few steps further by using blockchain to solve some real-world problems for women, most of whom didn’t even own smartphones by leveraging blockchain technology. 

Why Does It Matter?

For millions of informal workers — be it a street vendor or a home-based embroiderer — there was no digital proof of their work experience, skills, or financial transactions. 

Because of this, they did not get access to formal credit and had very little bargaining power.

SEWA’s initiative in association with Algorand to digitise ID cards, work experience records, and transaction histories on blockchain is a step towards inclusivity. 

How does it work? 

This series is brought to you in partnership with Algorand. 

CORE NUMBER

$20 million

This is the amount of fraudulent funds that were intercepted in a cross-country crackdown on scam operations based in Asia, the Associated Press reported. The report quoted police officials in Hong Kong as saying that authorities in Macau, South Korea, Thailand, Malaysia, the Maldives and Singapore were also involved in the operation. About 33,000 accounts were frozen, and 1,800 people were arrested.

Tariffs To Stall Growth? The Organisation for Economic Co-operation and Development (OECD) has lowered its global and US growth forecasts due to rising tariffs, trade uncertainty, and policy unpredictability under Donald Trump. US growth is now seen at 1.6% in 2025 (down from 2.2%) and 1.5% in 2026, with inflation expected to reach 3.2%. Global growth is also trimmed to 2.9% for both years. The slowdown is concentrated in North America. Tariffs, weaker investment, and fragile confidence are dragging economies down. Still, the OECD sees hope in US tech innovation, saying AI and robotics could spark a productivity boom—if trade barriers are eased.

US-India Trade Deal Almost Here. The US and India have been negotiating a bilateral trade agreement since March 2025 and are close to finalising a deal, according to US commerce secretary Howard Lutnick. The deal aims to expand bilateral trade from 191 billion dollars to 500 billion dollars by 2030. Lutnick added that Washington was seeking lower Indian tariffs on agricultural products, greater market access for American firms and increased purchases of its defence equipment. India wants “parity” with American allies like the UK and Australia, and wants tech transfers in sectors like nuclear energy. As well, India seeks lower duties on textiles, gems, oil seeds and shrimp.

Tesla’s Strategic India Bet. Elon Musk’s Tesla India has leased 24,565 sq ft of warehouse space at Lodha Logistics Park in Mumbai’s Kurla for Rs 24.38 crore over five years, signalling a deeper push into the Indian market. This is despite its plans to not manufacture in India. In earlier deals, Tesla leased a Rs 23.38 crore showroom in the Bandra Kurla Complex and a nearby co-working space, as well as a lease in Delhi. The Kurla warehouse, registered on May 16, 2025, includes two units, 20 parking spots, and a five-year lock-in. The move comes amid India’s shifting electric vehicle import policies and months of indecision by Tesla on its India policy.

India Opens Up Its Banks? India is considering relaxing its strict rules preventing foreign ownership of its banks, with the goal to attract long-term capital to bolster its fast-growing economy. The Reserve Bank of India (RBI) is currently reviewing shareholding and licensing guidelines in the financial sector and could allow regulated entities to own larger stakes in Indian banks on a case-by-case basis. This move comes soon after the country allowed Japan’s Sumimoto Mitsui Banking Corporation to acquire a 20% stake in Yes Bank, which was previously short of cash. Right now, two foreign investors – Canada’s Fairfax Holdings and Emirates NBD – are gunning for a 60% stake in the state-owned IDBI Bank.

PODCAST

On Episode 598 of The Core Report, financial journalist Govindraj Ethiraj talks to Nikhil Dhaka, Vice President at Primus Partners. We also feature an excerpt from our upcoming interview with Nigel Pont from our Build On Blockchain series.

• Rich valuations put pressure on markets again

• OECD says US growth will slow to 1.6% from 2.8% the previous year

• Oil prices are climbing once again, crossing $65 a barrel

• Why China’s clamp down on rare earth exports is causing panic waves world over, including in India

• India Inc’s expenditure and interest costs are muted, suggesting further belt tightening

• And how technology is enabling humanitarian cash transfers in Afghanistan and Syria

👥 THE TEAM

✍️ Zinal Dedhia, Salman SH, Kudrat Wadhwa | ✂️ Rohini Chatterji | 🎧 Joshua Thomas