Two A320neos, Once Owned By Indigo, Are Being Scrapped After Only Six Years — Here’s Why
These aircraft typically remain in operation for 20-25 years or more.
Two Airbus A321neo aircraft that once flew for IndiGo are being dismantled in Spain, despite having only six years of flying behind them and the potential for decades more of service.
According to Simple Flying, an online aviation news and media website, the two A321neos were delivered new to IndiGo (InterGlobe Aviation Ltd) in 2019. These aircraft typically remain in operation for 20-25 years or more.
The aircraft were recently acquired by aftermarket specialist Setna iO. In a LinkedIn post, Setna iO said it had acquired two A321neo airframes for dismantling.
“These airframes will be disassembled in Castellon, Spain, with all in-demand rotables routed for repair immediately,” stated Setna iO.
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According to Simple Flying, Setna iO did not reveal the aircraft registrations, but data from Swiss-based aviation analytics firm Ch-aviation indicates they are OE-IHD and OE-IHH, which earlier flew for IndiGo as VT-IUD and VT-IUE. Flightradar24 records indicate the jets flew their last commercial services in late February and were moved to Castellon in early May.
Both aircraft were leased to IndiGo for six years by UK-based Deucalion Aviation. The airplanes were returned when the agreement expired in February.
Why Are Young Aircraft Being Scrapped?
The two aircraft are being dismantled despite having relatively few flight hours and cycles, and while their value as operational jets remains significant. The decision comes at a time of ongoing supply chain disruptions that have limited aircraft production and maintenance, with the A320neo family among the most affected as airlines worldwide face difficulties in sourcing spare parts, reported Simple Flying.
Rob Morris, global head of consultancy at aviation analytics company Cirium, wrote in a LinkedIn post that the part-out value of each aircraft lies between $45 million and $56.5 million, depending on engine condition. The engines alone could be worth $15.2 million to $21.4 million each, “and a potential current market lease rate of $230k per month.”
In comparison, Ch-aviation places the current market value of the jets at around $43 million apiece, the Simple Flying report added. This discrepancy likely explains much of the decision. The value of the sum of the parts, especially the engines, now outweighs the value of the aircraft as a whole.
The financial logic becomes clearer when long-term leasing revenue is considered. Morris said that the “current market lease rate estimate for these aircraft is $350k per month.” Had the jets hypothetically remained in service, Simple Flying estimates that over another 20 years of service, each could have generated $60 million to $70 million in rental income.
