2100 air­craft by 2020 for In­dia

Boe­ing has fore­cast that In­dia will re­quire 2100 new air­planes worth $290 bil­lion by 2020. Di­nesh A. Keskar, Se­nior Vice Pres­i­dent-Sales Asia Pa­cific & In­dia, Boe­ing, discusses fac­tors boost­ing the coun­try’s growth.

TravTalk - India - - MOVEMENTS - SHAHZAD BAGWAN

QTell us about Boe­ing’s fore­cast on the In­dia mar­ket? Based on fac­tors like GDP growth in In­dia, fuel price and ex­change rates for next 20 years, In­dia will need 2100 air­craft worth $290 bil­lion. This is the high­est fore­cast we have shown for In­dia and we are quite bullish on the In­dian mar­ket be­cause of many fac­tors that are preva­lent here. Com­mer­cial aerospace de­mand in In­dia con­tin­ues to grow at un­prece­dented rates. The in­creas­ing num­ber of pas­sen­gers com­bined with a strong ex­change rate, low fuel prices and high load fac­tors au­gurs well for In­dia’s avi­a­tion mar­ket, es­pe­cially for the Low Cost Car­ri­ers. Apart from out­look for 2020 other find­ings showed traf­fic growth in In­dia is more than 20 per cent, far ex­ceed­ing the global av­er­age of 7.3 per cent.

QPlease throw some light on the cur­rent air­craft on or­der by In­dian car­ri­ers?

We are ba­si­cally a dom­i­nant player in wide body mar­ket. We have Air In­dia op­er­at­ing 24 787-8 Dream­liner air­craft and we have three more to be de­liv­ered by Oc­to­ber this year. Air In­dia also op­er­ates 777300ER and they will be get­ting de­liv­ery of three more air­craft in the early part of 2018. Jet Air­ways is cur­rently op­er­at­ing ten 777300ER and have ten 787-9 on or­ders from Boe­ing. In terms of sin­gle-aisle mar­ket, we have a large or­der of 205 air­craft from SpiceJet and 75 MAX air­craft or­ders from Jet Air­ways, both of which will be de­liv­ered in one year time pe­riod.

QDo you see any im­pact on the cur­rent or­ders by Air In­dia due to the dis­in­vest­ment in the Air­line?

No, the dis­in­vest­ment or pri­vati­sa­tion of Air In­dia is a bold step by the govern­ment. We al­ways sup­port any ac­tiv­ity that will make Air In­dia stronger, health­ier and more growth ori­ented. With some­body com­ing in and the govern­ment sup­port­ing the new en­trant, ob­vi­ously they will be in­vest­ing money in the mar­ket to grow fur­ther which will help the air­line pros­per more.

QWhich are ma­jor growth driv­ers in In­dian avi­a­tion? LCCs are do­ing a great job in terms of in­creas­ing growth in In­dia. SpiceJet, In­diGo, GoAir and some oth­ers are work­ing hard to drive the growth. Air­lines like Air In­dia, Jet Air­ways and Vis­tara, which are full-ser­vice car­ri­ers, are also grow­ing. I think In­dia has reached the equi­lib­rium where two out of five pas­sen­gers are go­ing to fly on a fullser­vice car­rier while three out of five will fly on a Low Cost Car­rier.

QHas there been any in­creased growth in any par­tic­u­lar air­lines? Ev­ery air­line in the In­dian mar­ket is show­ing pos­i­tive growth which is a good sign for the mar­ket. Each air­line will gain their growth based on a lot of fac­tors but the key is when all those air­lines and maybe some new en­trants in the fu­ture will to­gether re­sult in the fore­cast that we have given for the In­dian mar­ket.

QHow will the MAX air­craft help open new mar­kets for air­lines? We have just de­liv­ered the first 737-8 MAX in May this year, which was pur­chased by SpiceJet and Jet Air­ways in In­dia. The 737-8 MAX air­craft will be 14 per cent more fuel ef­fi­cient than the one we have cur­rently. This cat­e­gory air­craft will have a fly­ing range of about 300-plus miles and will help car­ri­ers in In­dia to open up new mar­kets which they were un­able to add be­cause of in­ad­e­quate range from the cur­rent air­craft. The 737 MAX is the fastest sell­ing air­plane in Boe­ing his­tory be­cause cus­tomers through­out the world, in­clud­ing In­dia, want its com­bi­na­tion of per­for­mance, flex­i­bil­ity and ef­fi­ciency. Boe­ing also con­tin­ues to of­fer the most com­plete fam­ily of wide body air­planes, as ev­i­denced by our more than 85 per cent in-ser­vice mar­ket share in In­dia. While we de­velop this, we have made sure that the op­er­at­ing cost is low, the fuel burn is low and thereby the In­dian car­rier gets op­por­tu­nity to make more prof­its.

QHow do you see UDAAN Scheme First, it will help In­dia con­nect to more cities and more peo­ple liv­ing in those cities will have the op­tion of fly­ing to their des­ti­na­tions. Sec­ond, it is go­ing to be some­thing that will help In­dia grow faster and our cur­rent fore­cast on In­dia mar­ket will get even bet­ter. Fi­nally, for air­lines in In­dia, when they start a new route un­der the UDAAN scheme with a 90-seater air­plane over the next 4-5 years, it will be­come a route that a Boe­ing 737 can fly. When this hap­pens, it will clearly be ben­e­fi­cial for the air­lines and all stake­hold­ers and the Govern­ment of In­dia.

I think In­dia has reached the equi­lib­rium Low Cost Car­rier. Di­nesh A. Keskar Se­nior Vice Pres­i­dent-Sales

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