Asia-Pacific airlines, recovering from the pandemic’s impact on travel, are facing mounting challenges due to ongoing supply chain disruptions, which are affecting their operations and profitability. Key issues include shortages of parts, labor, and new aircraft, as well as extended maintenance times for newer engine models, airline executives revealed at the Association of Asia Pacific Airlines (AAPA) annual meeting in Brunei this week.
Subhas Menon, AAPA’s director general, identified supply chain problems as the “biggest challenge” for the industry, with airlines struggling to maintain schedules as they face longer-than-usual turnaround times for critical maintenance. The situation is exacerbated by rising demand for air travel, pushing airlines to rely on stop-gap solutions, such as leasing replacement engines or planes to ensure operations continue.
Thai Airways CEO Chai Eamsiri highlighted the strain on his airline, noting that servicing Rolls-Royce engines on its Boeing 787 jets, which once took three months, now requires six months due to parts shortages. “We have to stretch the aircraft. We used to operate 12.5 hours a day, now we have to stretch it to 13 plus,” he explained.
Airlines from across the region, including Singapore Airlines, Malaysia Airlines, and Air Astana, voiced frustration with the slow pace of repairs and maintenance. At the same time, they are under pressure from governments tightening consumer protection laws. Countries like Malaysia, Thailand, and the Philippines are enhancing regulations to ensure passengers receive compensation for delays or cancellations, a trend also seen in the United States, though less stringent than EU regulations.
Malaysia Airlines, in particular, has been hit hard by supply chain challenges, reducing its network capacity by 20% since September. CEO Izham Ismail reported that engine servicing times, which used to take 55 days pre-pandemic, now stretch to 100 days or more.
Industry leaders are urging manufacturers like Rolls-Royce and Airbus to resolve supply chain issues swiftly, with some calling for better access to financing for parts suppliers to expedite repairs and manufacturing processes.