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The Airports Authority of India has concluded following a preliminary assessment of airports, airstrips, and special economic zones that there is indeed potential for development of aircraft boneyards in the country, said two people familiar with the government’s thinking.
However, it isn’t clear yet if the civil aviation ministry or the airports authority want to actively take this proposal forward, one of them said. “It depends on whether there is any commercial interest in running such establishments in the country, and also on the plans of the government that comes to power next month.”
India’s parliamentary election concludes this month, and a new government will be sworn in following the poll results in June.
The civil aviation ministry and the Airports Authority of India did not reply to queries on the plans for establishing aircraft boneyards in the country.
India currently has only one such facility—a graveyard for defence aircraft at Allahabad.
Aircraft boneyards are somewhat similar to ship graveyards, where decommissioned ships are sent to be dismantled. India boasts of the world’s largest shipbreaking yard, in Alang, Gujarat, which dismantles about half of the world’s sea vessels.
The viability test
Aviation authorities first felt the need for aircraft boneyards during the pandemic lockdowns, but as a low-cost parking option and not as a retirement facility for planes. During the covid years, airlines were left with several planes stranded because there weren’t enough passengers to fly, and had to pay hefty sums to park their aircraft at commercial airports.
As a retirement facility, however, aircraft boneyards may not yet make much commercial sense in India. Most Indian airlines lease aircraft from global manufacturers rather than take ownership of planes.
The exception is India’s largest carrier, Interglobe Aviation Ltd, or IndiGo, whose management recently stated during a post-earnings call that the airline was looking to invest more in owning aircraft and engines. IndiGo increased its owned fleet to 26 aircraft in December, from 16 in September and 14 in June.
But an aircraft boneyard would make sense for an airline like Go First, whose 54 leased aircraft have been grounded since the company filed for bankruptcy in May 2023. The Delhi High Court last month ordered the Directorate General of Civil Aviation to register the aircraft so the lessors could fly back their planes.
Davinder Sandhu, co-founder and chairperson at consultancy Primus Partners, said it was not clear if there was commercial viability for aircraft boneyards in India.
“India’s civil aviation sector is relatively young and growing fast with the acquisition of new aircraft. (But) since obsolescence on the civilian aircraft side is not an issue, it will not be viable to consider the expensive real estate at airports for boneyards,” said Sandhu.
“However, one has seen continuing commercial turbulence in the industry post-covid, with parked aircraft taking up precious space. In this context, it may be viable to develop parking boneyard facilities away from congested airports,” he added. “This will release space at airports for enhanced operations, and lower parking costs for airlines. A good example is the Pinal Airpark in Marana, Arizona.”
The US currently has at least half a dozen aircraft boneyards, for both civilian and military planes, including some that are popular for their collection of vintage jets. Some of these boneyards are used not only for scrapping parts from retired aircraft, but also for storage, modification and repair.
A World War connection
Aircraft boneyards came into existence after World War II in 1946. Following the war, the US military needed to store thousands of fighter aircraft and bomber jets such as the B-29s and C-47s.
As these aircraft were part of the US’s strategic reserve, the military found a place with low humidity, low rainfall, and high altitude so as to reduce corrosion and prevent rust in the planes.
In India, the Airports Authority’s preliminary assessment has indicated that aircraft boneyards can be established at airstrips around special economic zones and at small airports.
“One has seen continuing commercial turbulence in the industry post-covid, with parked aircraft taking up precious space. In this context, it may be viable to develop parking boneyard facilities away from congested airports,” said Sandhu of Primus Partners.
