Kuala Lumpur, 30th May 2025:

Despite strong demand, airlines in India and across the Asia Pacific, are held back by chronic supply chain constraints. The Association of Asia Pacific Airlines (AAPA) has warned that tariffs will worsen supply chain constraints and raise costs further.

“Supply chain constraints are delaying fleet modernisation and causing flight disruptions due to parts shortages. Increasingly, regulators are expecting airlines to compensate passengers for flight disruptions, even when these are caused by circumstances beyond the control of airlines. Air carriers have established practices for taking care of customers when there is a delay or cancellation, such as by rebooking them on other flights, providing meal vouchers, refunds or travel credits. However, over-prescriptive passenger rights regulations do not address the root causes of the disruptions, while unnecessarily adding costs and further inconveniencing passengers,” said Mr. Subhas Menon, Director General of AAPA.

The industry’s push toward net-zero is also stalling, with limited Sustainable Aviation Fuel (SAF) production and aging fleets increasing emissions.

“Suppliers must urgently address the constraints,” said Menon, adding that “airlines are enablers of connectivity, but they can’t fly with their hands tied. Enabling policies by Governments would promote a resilient and sustainable industry that is much needed for growing economies.”

India is set to become the third largest aviation market in the world. A rejuvenated airline and airport infrastructure thanks to proactive Government policy and privatisation will enable the industry to rise to its full potential while contributing to socio-economic development in the region.