Airlines across the Asia-Pacific region are experiencing a strong recovery in travel demand as the effects of the pandemic wane. However, the industry faces substantial obstacles from ongoing supply chain challenges, rising maintenance delays, and tighter consumer protection regulations. With an ongoing shortage of labor, aircraft, and spare parts, carriers now face prolonged maintenance schedules and increasing repair needs for new-generation engines, which have created significant operational strains.
Subhas Menon, Director General of the Association of Asia Pacific Airlines (AAPA), highlighted these issues during the AAPA’s annual meeting in Brunei. “The supply chain issue is the biggest challenge the industry is facing,” Menon noted. He explained that turnaround times for engine maintenance are at record levels, forcing airlines to cut flights, move parts, or lease temporary engines to maintain operations.
Extended Engine Maintenance Schedules Impact Operations
AAPA members, including Thai Airways, Singapore Airlines, Malaysia Airlines, and Kazakhstan’s Air Astana, expressed mounting frustrations over the delays, particularly with engine maintenance. Thai Airways CEO Chai Eamsiri shared that servicing the Rolls-Royce engines on the carrier’s Boeing 787 jets, which used to take about three months, has now expanded to approximately six months. “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.
Malaysia Airlines has also seen considerable operational disruptions this year. Malaysia’s aviation authority recently reduced the carrier’s air operator certificate duration to one year from three, citing service reliability concerns. CEO Izham Ismail mentioned that engine maintenance, previously around 55 days, now takes over 100 days, intensifying operational difficulties. “All airlines are wringing the neck of our suppliers,” he stated, reflecting the strain on airline-provider relationships.
The need to find temporary solutions has led some airlines to reroute parts, delay flights, or lease additional engines and aircraft, though these measures also add operational costs. In response, Air Astana CEO Peter Foster urged aviation manufacturers to resolve supply issues more quickly, saying, “Aviation manufacturers have to get their act together.”
New Consumer Protections Add Regulatory Pressure
Countries such as Malaysia, Australia, Thailand, and the Philippines have introduced strengthened consumer protections, requiring airlines to offer refunds or alternative arrangements for delayed or canceled flights. While aimed at ensuring customer satisfaction, these measures place new regulatory pressures on airlines that are already facing supply-driven delays. Eamsiri emphasized the difficulty of bearing the public’s frustrations with delays stemming from global supply issues, explaining, “The root cause is coming from the supply chain…But we are the one facing the customer.”
In the United States, similar rules require airlines to compensate affected passengers, while the European Union has stricter compensation policies for delayed flights. As these regulations spread across Asia, industry leaders are urging governments to consider the impact of supply chain constraints on airline operations.
Representatives from Airbus and Rolls-Royce stated they are working to address the supply chain constraints and enhance financing access for suppliers to improve delivery times. These measures aim to reduce the long wait periods for parts and service required to keep aircraft in operation.
Falling Airfares Amid Increased Competition
Despite high demand, ticket prices have begun to decline across the Asia-Pacific market as the post-pandemic surge stabilizes and more planes return to the skies. The AAPA reported that in September, 40 Asia-Pacific airlines reached passenger volumes at 97.5% of their September 2019 levels. However, Singapore Airlines, which serves as an indicator for the region’s overall health, recently posted a 48.5% drop in interim net profit, citing heightened competition. The airline expects profit margins to stay under pressure as more carriers vie for returning travelers.
With Asia-Pacific travel nearing full recovery, the region’s airlines continue to face challenges from supply shortages, new regulatory pressures, and fierce market competition. Many carriers remain focused on adapting their operations to address these hurdles while keeping up with increasing passenger demand.
