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Engine Reliability Challenges Impact Asia-Pacific Airlines Financially

Asia-Pacific airlines face significant financial losses due to engine reliability issues worsened by harsh environmental conditions and supply shortages.

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This article is based on an official press release from GE Aerospace.

Engine Reliability: The New Currency for Asia-Pacific Airlines

For airlines operating in the Asia-Pacific region, the ability to adhere to a schedule has transcended basic operational metrics to become a critical determinant of financial survival. According to a recent release by GE Aerospace, reliability is no longer just a safety baseline but the “cornerstone” of the customer promise in a post-pandemic landscape where demand frequently outstrips supply.

While the region remains the world’s fastest-growing aviation market, carriers are currently navigating a “capacity crisis.” Supply-Chain shortages and engine durability issues have forced major airlines to ground fleets, impacting profitability and brand reputation. As manufacturers like GE Aerospace emphasize the strategic value of “time-on-wing,” independent industry data from early 2026 reveals the staggering financial toll that technical disruptions are exacting on carriers from New Zealand to Japan.

The “Harsh Environment” Challenge

GE Aerospace identifies the unique operating conditions of the Asia-Pacific region as a primary factor in engine performance. The combination of high ambient temperatures, humidity, and airborne dust or pollution creates a “hot and harsh” environment that accelerates component wear. These factors make “time-on-wing,” the duration an engine can fly before requiring removal for maintenance, a vital performance metric for airlines attempting to maintain high utilization rates.

In its statement, the manufacturer argues that in this volatile market, an airline’s competitive advantage lies in its ability to simply operate its published schedule. Unscheduled engine removals do not merely disrupt travel plans; they decimate thin profit margins by introducing unpredictable costs. To mitigate this, GE highlights its deep collaborations with regional carriers such as Japan Airlines (JAL) and Malaysia Aviation Group (MAG), positioning Maintenance, Repair, and Overhaul (MRO) networks as essential support structures rather than logistical afterthoughts.

The Financial Reality: Groundings and Losses

While manufacturers focus on technical resilience, financial reports from 2025 and early 2026 illustrate the severe economic impact of engine unreliability. Independent market research indicates that no manufacturer is immune to the region’s challenging environment, and the costs of disruption are rising.

Air New Zealand has faced significant headwinds due to maintenance delays. According to financial data for the fiscal year 2025, the airline estimated the cost of these disruptions to be between $280 million and $320 million (NZD), with profits falling approximately 14%. These costs are largely attributed to the grounding of up to 11 aircraft necessitated by maintenance delays involving Pratt & Whitney and Rolls-Royce engines.

Similarly, IndiGo reported a consolidated loss in the second quarter of the 2025 fiscal year. Industry analysis attributes this partly to the grounding of approximately 40 aircraft linked to powder metal issues in Pratt & Whitney GTF engines. To maintain its schedule, the carrier has aggressively pursued “damp lease” agreements to plug capacity gaps.

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Other carriers facing similar hurdles include:

  • Vietnam Airlines: As of late 2025, the carrier had grounded 28 aircraft, representing roughly 13% of its fleet, forcing route cuts despite record passenger demand.
  • Cebu Pacific: The airline slashed growth targets after its grounded fleet peaked at 16 aircraft. By early 2026, it had reduced this number to approximately eight but was forced to purchase extra spare engines to sustain operations.
  • ANA (All Nippon Airways): Growth for its AirJapan subsidiary stalled due to maintenance delays associated with Boeing 787 engines.

Manufacturer Landscape and Operational Stability

The operational strain has highlighted the divergent performance of major engine types. GE Aerospace asserts that its GEnx and CFM LEAP engines are performing robustly regarding time-on-wing metrics in the region. However, the manufacturer is not without its own challenges. In January 2026, Boeing and GE identified a durability issue with a seal on the new GE9X engine intended for the 777X, though they stated it would not delay the 2027 entry-into-service.

Competitors face steeper recovery curves. The Pratt & Whitney Geared Turbofan (GTF) fleet has been heavily impacted by powder metal defects, leading to widespread groundings of A320neo family aircraft. While “Advantage” upgrades are rolling out in 2026 to improve durability, the disruption has been substantial. Meanwhile, Rolls-Royce is introducing durability enhancement packages for the Trent 1000 to address the frequent inspections that have plagued Boeing 787 operators.

AirPro News Analysis

The data suggests a fundamental shift in how Asia-Pacific airlines prioritize their assets. For years, fuel efficiency was the primary driver of fleet decisions. However, the “hot and harsh” reality of the region is forcing a pivot toward durability. When a fuel-efficient jet spends months parked in a hangar waiting for parts, its efficiency advantage evaporates.

We observe that airlines are increasingly treating reliability as a premium product attribute. Carriers like Singapore Airlines and ANA, which have maintained higher on-time performance scores according to 2026 Cirium data, are leveraging their operational stability to market themselves as dependable premium options. Conversely, the “chaos” of January 2026, where over 40 flights were cancelled across major hubs like Hong Kong and Jakarta, demonstrates that in a system with record load factors, there is zero slack for technical failure.

Ultimately, the industry is learning that resilience requires capital. Airlines are moving away from “just-in-time” maintenance strategies, instead choosing to bloat their balance sheets with spare engines and retained older aircraft to ensure they can meet their promise to the passenger.

Frequently Asked Questions

Why is the Asia-Pacific region harder on aircraft engines?

The region combines high ambient temperatures with high humidity and significant airborne dust or pollution. These factors accelerate the wear of turbine blades and other critical components, reducing the time an engine can stay on the wing before needing maintenance.

How are airlines managing the shortage of working engines?

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Airlines are adopting several costly strategies: leasing aircraft from other carriers (“damp leasing”), purchasing additional spare engines to swap out quickly, and retaining older, less efficient aircraft that were scheduled for retirement.

Which airlines have been most affected by recent engine groundings?

Major carriers including Air New Zealand, IndiGo, Vietnam Airlines, and Cebu Pacific have all reported significant groundings and financial impacts throughout 2025 and early 2026 due to supply chain and durability issues.

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Photo Credit: GE Aerospace

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Route Development

SAS and TAROM Codeshare Connects Scandinavia and Romania in 2026

SAS and TAROM announce a codeshare agreement effective February 2026, enhancing connectivity between Scandinavia and Romania with SkyTeam benefits.

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This article is based on an official press release from SAS Group.

SAS and TAROM Launch Strategic Codeshare to Connect Scandinavia and Romania

Scandinavian Airlines (SAS) and TAROM, the flag carrier of Romania, have announced a comprehensive codeshare agreement set to commence on February 9, 2026. The partnership aims to restore and enhance connectivity between Northern Europe and Romania following SAS’s strategic shift to the SkyTeam alliance.

According to the official announcement from SAS Group, the agreement will allow passengers to book single-ticket journeys between the two regions by utilizing major European transit hubs. This move integrates TAROM, a long-standing SkyTeam member, more deeply with SAS, which officially joined the alliance on September 1, 2024.

The collaboration addresses a significant gap in network connectivity, offering business and leisure travelers seamless baggage check-through and reciprocal loyalty benefits. Paul Verhagen, EVP & Chief Commercial Officer at SAS, emphasized the strategic value of the deal in a statement:

“This new partnership with TAROM marks an important step in enhancing connectivity between Scandinavia and Romania. By combining our networks and offering smooth transfers via key European hubs, we are giving our customers more choice, flexibility, and convenience.”

Operational Details: The Virtual Hub Strategy

Rather than launching direct flights immediately, the airlines are leveraging a “virtual hub” strategy. According to the press release, the codeshare will route traffic through four key intermediate airports: Amsterdam (AMS), Brussels (BRU), Frankfurt (FRA), and Prague (PRG).

Under the terms of the agreement:

  • TAROM will place its RO marketing code on SAS flights connecting Copenhagen, Oslo, and Stockholm to these intermediate hubs.
  • SAS will place its SK marketing code on TAROM flights connecting Bucharest to the same hubs.

This structure allows the airlines to offer competitive travel times and frequency without dedicating aircraft to direct point-to-point routes, which are currently dominated by low-cost carriers.

Strategic Context: The SkyTeam Realignment

This agreement is a direct consequence of the major airline alliance realignment that occurred in late 2024. When SAS departed Star Alliance to join SkyTeam, it lost its traditional connectivity to Eastern Europe provided by partners like Lufthansa and Austrian Airlines. Partnering with TAROM allows SAS to rebuild its footprint in the region using SkyTeam infrastructure.

For TAROM, the deal unlocks access to the high-yield Scandinavian market. The Romanian carrier is currently in the midst of a fleet modernization program, transitioning from aging aircraft to new Boeing 737 MAX 8 jets expected to arrive in late 2025 and 2026. By utilizing SAS for the northern leg of the journey, TAROM can expand its network reach while conserving its own metal for other high-demand routes.

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Narcis Obeadă, Commercial Director at TAROM, hinted at further expansion in the company’s statement:

“In the coming period, TAROM will announce new commercial agreements, in line with the company’s mission to safely and efficiently connect Romania and Romanian culture to the international air transport network.”

Passenger Experience and Loyalty

Travelers utilizing the codeshare will benefit from the full suite of SkyTeam alliance perks. Members of SAS EuroBonus and TAROM’s loyalty program will be able to earn and redeem points on these codeshare flights. Additionally, premium passengers will gain access to SkyTeam lounges at transit hubs.

The passenger experience on the SAS leg of these journeys is also set for an upgrade. SAS is currently rolling out free high-speed Starlink WiFi across its fleet, a project the airline states will be widely available by late 2025.

AirPro News Analysis

The “Prague” Anomaly and Market Positioning

The inclusion of Prague (PRG) as a connection hub is a notable operational detail. Following the cessation of operations by Czech Airlines (CSA) as a standalone SkyTeam member in October 2024, Prague is no longer a primary alliance hub. The decision to route traffic through PRG suggests a strong bilateral interline capability between SAS and TAROM that functions independently of major alliance hub infrastructure.

Furthermore, this deal clearly targets the premium business segment. While low-cost carrier Wizz Air operates direct flights between Bucharest and Copenhagen, legacy carriers cannot compete purely on price. Instead, SAS and TAROM are competing on schedule flexibility (multiple daily frequencies via hubs) and corporate perks (lounge access, baggage interlining). With tourism to Romania rising, foreign arrivals were up 13.4% year-on-year as of August 2024, the demand for reliable, full-service connectivity is likely to grow.

Frequently Asked Questions

When can I book these codeshare flights?
The codeshare agreement is effective starting February 9, 2026. Tickets should be available through both airlines’ booking channels prior to this date.

Will my bags be checked through to the final destination?
Yes. Because this is a full codeshare agreement, passengers traveling on a single ticket (e.g., Bucharest to Stockholm via Amsterdam) will have their baggage checked through to the final destination.

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Do these flights count toward SkyTeam Elite status?
Yes. Flights marketed and operated by SkyTeam members (SAS and TAROM) count toward tier status and accrue redeemable miles/points according to the rules of your specific loyalty program.

Sources

Photo Credit: SAS Group

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Route Development

Starlux Airlines Launches Taipei to Prague Flights in 2026

Starlux Airlines will begin nonstop service between Taipei and Prague in August 2026, featuring its exclusive First Class on the Airbus A350-900.

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This article summarizes reporting by One Mile at a Time and Ben Schlappig.

Starlux Airlines Selects Prague for First European Route

Starlux Airlines, the Taiwan-based luxury carrier, has officially announced its expansion into the European market. According to reporting by One Mile at a Time, the airline will launch nonstop service between Taipei (TPE) and Prague (PRG) beginning August 1, 2026. This development marks a major milestone for the “boutique” airline, representing its first long-haul destination outside of North America.

The new route signals a strategic shift for Starlux, which has previously focused its long-haul efforts exclusively on transpacific flights to the United States. By deploying its flagship Airbus A350-900 aircraft on this sector, the airline intends to compete directly with legacy carriers by offering a premium-heavy configuration, including its exclusive First Class cabin.

Flight Schedule and Operational Details

Based on schedule data cited by One Mile at a Time and confirmed by Prague Airport, the service will initially operate three times weekly. The flights are scheduled for Tuesdays, Thursdays, and Saturdays, with plans to increase frequency to four times weekly by adding Mondays starting in October 2026.

The operational schedule is as follows:

  • JX101 (Taipei to Prague): Departs TPE at 00:10, arriving in PRG at 07:50 (Flight time: approx. 13 hours 40 minutes).
  • JX102 (Prague to Taipei): Departs PRG at 10:20, arriving in TPE at 05:10 the following day (Flight time: approx. 12 hours 50 minutes).

Jiří Pos, Chairman of the Board of Directors at Prague Airport, welcomed the new connection in a statement regarding the launch.

“We estimate that the route will be used by approximately 95,000 passengers in the first year of operation.”

, Jiří Pos, Chairman of Prague Airport

Onboard Experience: The Airbus A350-900

Travelers on this route will experience Starlux’s most premium hardware. One Mile at a Time notes that the Airbus A350-900 is the only aircraft type in the Starlux fleet equipped with a First Class cabin. The aircraft features a total of 306 seats across four distinct classes:

  • First Class: 4 suites in a 1-2-1 configuration, featuring 60-inch sliding doors and “Zero G” seating.
  • Business Class: 26 seats in a 1-2-1 reverse herringbone layout with lie-flat beds.
  • Premium Economy: 36 seats in a 2-4-2 layout.
  • Economy Class: 240 seats in a 3-3-3 layout.

This deployment is significant because it brings a true First Class product to the Taipei-Prague market, distinguishing Starlux from competitors that may only offer Business Class on similar routes.

AirPro News Analysis: Strategic Market Positioning

While major European hubs like London Heathrow or Paris Charles de Gaulle are often the first ports of call for Asian carriers expanding westward, Starlux’s choice of Prague is driven by specific economic factors rather than traditional tourism volume alone.

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The Semiconductor Connection
We observe that the economic ties between Taiwan and the Czech Republic have deepened significantly due to the semiconductor industry. With major investments from Taiwanese tech giants in Central Europe, business travel demand is high. Starlux CEO Glenn Chai highlighted this synergy in his remarks regarding the Launch.

“Prague is a long-favored destination for Taiwanese travelers, and growing semiconductor industry ties are expected to further drive demand…”

, Glenn Chai, CEO of Starlux Airlines

Competitive Landscape
Starlux will face direct competition from China Airlines, which launched the same route in July 2023. However, Starlux appears to be betting on its “luxury boutique” brand identity to capture high-yield business travelers and premium leisure tourists who prioritize cabin comfort and newer aircraft hardware.

Future European Expansion

According to the reporting by Ben Schlappig, this route is likely just the beginning of Starlux’s European ambitions. The airline has indicated plans to launch a second European destination later in 2026. While not officially confirmed, industry reports suggest Milan (MXP) is a strong contender, which would align with the carrier’s Strategy of connecting high-value fashion and business hubs.

Frequently Asked Questions

When does the Starlux Taipei-Prague flight launch?
The inaugural flight is scheduled for August 1, 2026.
Does Starlux offer First Class to Europe?
Yes, the Prague route will be operated by the A350-900, which features Starlux’s exclusive four-seat First Class cabin.
How often will the flight operate?
The service begins with three weekly flights (Tuesday, Thursday, Saturday) and is expected to increase to four weekly flights in October 2026.

Sources: One Mile at a Time, Prague Airport Press Release

Photo Credit: Starlux Airlines

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Commercial Aviation

Airnorth Extends Fleet Support Agreement with Embraer

Airnorth renews its multi-year Embraer Pool Program contract to maintain fleet reliability and component support for E170 and E190 jets in remote regions.

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This article is based on an official press release from Embraer.

Airnorth Secures Fleet Reliability with Extended Embraer Pool Program Deal

Airnorth, Australia’s premier regional airline, has officially reaffirmed its long-standing relationship with Brazilian aerospace manufacturer Embraer. On February 6, 2026, the companies announced a multi-year extension of a comprehensive fleet support agreement covering Airnorth’s operation of E170 and E190 jet aircraft.

According to the announcement, the renewed contract falls under the “Embraer Pool Program,” a service solution designed to streamline maintenance and component availability. This extension ensures that Airnorth’s fleet, which serves some of the most remote and challenging routes in Northern Australia and Timor-Leste, retains direct access to Embraer’s global technical support and component exchange network.

Enhancing Operational Stability in Remote Regions

The primary focus of the agreement is to guarantee operational reliability for Airnorth’s jet fleet. Operating out of Darwin, the airline connects remote communities across the Northern Territory, Queensland, and Western Australia, as well as international services to Dili, Timor-Leste. In these isolated environments, supply chain logistics are critical; an “Aircraft on Ground” (AOG) event due to a missing part can cause significant disruptions.

Under the terms of the Pool Program, Airnorth gains access to a large stock of components at Embraer’s distribution centers. This arrangement allows the airline to minimize upfront capital investment in high-value repairable inventories. Instead of purchasing and warehousing expensive spare parts, Airnorth utilizes Embraer’s exchange service, converting fixed inventory costs into predictable operating expenses.

In a statement regarding the extension, Bradley Norrish, Airnorth’s Supply Chain Manager, emphasized the critical nature of OEM support for regional connectivity:

“Reliability is everything for a regional airline like Airnorth. This agreement gives us confidence that our Embraer fleet is backed by world-class OEM support, with fast access to components and technical expertise when and where we need it. It also allows us to manage costs more effectively… and keep our focus where it belongs, safely connecting communities.”

A Decade of Partnership

The relationship between the two entities spans nearly two decades. Airnorth was the launch customer for the Embraer E170 in Australia, introducing the type in 2007 to replace smaller turboprops on key routes. The airline later expanded its jet capacity by introducing the larger E190 to handle increased passenger volumes on trunk routes such as Darwin-Perth and Darwin-Cairns.

Carlos Naufel, President and CEO of Embraer Services & Support, highlighted the durability of the partnership in the company’s press release:

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“We are proud to mark a decade of partnership with Airnorth and appreciate their renewed confidence in Embraer through this agreement. Operating in some of the region’s most challenging conditions, Airnorth plays a vital role in connecting communities.”

AirPro News Analysis

From our perspective at AirPro News, this renewal highlights a broader trend among regional operators to lean heavily on OEM (Original Equipment Manufacturer) support programs as their fleets mature. The E170, while a robust airframe, has been out of production for some time as the industry shifts toward the E2 variants. By locking in a Pool Program agreement, Airnorth effectively insulates itself from the volatility of the secondary parts market.

Furthermore, for an airline owned by the Bristow Group, which specializes in vertical flight solutions and demands high safety standards, guaranteed component availability is a strategic necessity rather than a luxury. The ability to access a global pool of parts ensures that Airnorth can maintain high dispatch reliability despite operating in a region known for extreme weather and logistical isolation.

Summary of Services

According to the details provided by Embraer, the Pool Program extension includes the following key services:

  • Component Exchange: Immediate access to replacement parts while broken components are sent for repair.
  • Repair Services: Comprehensive maintenance coverage for the E170 and E190 fleets.
  • Inventory Management: Reduced need for Airnorth to hold its own warehousing stock, lowering overhead.
  • Technical Expertise: Direct support from Embraer’s engineering teams.

This agreement ensures that Airnorth remains a dominant force in Northern Australian aviation, capable of maintaining the rigorous schedules required to serve both resource sector clients and remote communities.


Sources:

Photo Credit: Embraer

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