India’s Aviation Sector Seeks Relief Amid Supply Chain Crisis with Aircraft Import Rule Reforms

India’s Aviation Sector Seeks Relief Amid Supply Chain Crisis with Aircraft Import Rule Reforms

India’s aviation industry is grappling with a serious supply chain crisis that has left many aircraft grounded and growth stalled. In response, the Directorate General of Civil Aviation (DGCA) has proposed a pivotal amendment to relax aircraft import age limits, offering a vital lifeline to airlines struggling to expand their fleets amid global delivery delays.

Supply Chain Challenges Ground Fleet Expansion

The DGCA’s draft amendment targets the pressing issue of fleet shortages. Currently, Indian airlines must adhere to an 18-year age limit on imported pressurized aircraft and a 20-year limit for unpressurized planes. The proposed new rules would allow import of pressurized aircraft up to 20 years old and unpressurized planes up to 25 years, marking a significant policy shift. This move aims to mitigate the effects of supply chain disruptions that have seen over 133 aircraft grounded as of March 2025—approximately 16 percent of India’s commercial fleet. Major carriers, including InterGlobe Aviation, have suffered operational setbacks, with dozens of planes grounded due to maintenance and engine issues.

Rising Demand Meets Regulatory Flexibility

India’s airlines are in a growth phase, operating over 800 leased aircraft with plans to expand to more than 1,400 planes on order. The amendment proposal includes safeguards such as limiting passenger service aircraft to either 20 years of age or 65 percent of economic lifespan based on pressurization cycles. For training and private operations, planes must demonstrate recent airworthiness with minimum flight hours, and aircraft older than 25 years remain banned. These nuanced conditions reflect an effort to balance safety with operational necessity.

Airlines Pivot with Alternative Strategies

Carrier responses highlight the urgency of the capacity crunch. SpiceJet announced plans to lease 10 Boeing 737s on short-term “damp leases” through October 2025 to handle increased winter demand, even as the airline posts losses partly due to grounded planes. Meanwhile, Air India has suspended critical long-haul Delhi-Washington flights amid a shortage of wide-body aircraft tied to fleet retrofit projects. With relief from manufacturers like Boeing and Airbus delayed—production backlogs project 4-5 more years of wait times—the industry is urgently exploring flexible solutions.

Looking Ahead: India’s Aviation Future

As India aims to become the world’s third-largest aviation market, projecting passenger traffic to double to 500 million by 2030, these regulatory changes are expected to provide airlines with crucial operational flexibility. By relaxing import rules, the DGCA is offering a stopgap to navigate immediate supply shortages while manufacturers work through unprecedented production constraints. This pragmatic approach could help airlines maintain growth momentum and service levels during a challenging industry-wide bottleneck.

The aviation sector stands at a critical juncture—with proactive policy reforms assembled in response to global supply chain challenges, India is poised to sustain its aviation trajectory despite temporary hurdles in fleet availability.

This evolving situation underscores the interconnectedness of global supply chains and regulatory adaptability as key drivers for India’s aviation resilience and future success.