Airbus reworks delivery schedule on high crude price, slow traffic

New Delhi: The slowdown in traffic growth caused by record oil prices and poor financial health of airlines has led to European major Airbus reworking delivery schedules with some of its Indian clients. Indian carriers have placed orders for 373 aircraft which have begun joining their fleet. As many as 290 orders are for single-aisle aircraft of A-320 family that are to be used primarily on domestic sector that is witnessing slower growth now due to ever-increasing cost of flying.
''We are working on delivery schedules to better suit market conditions. There is overcapacity on some sectors in India while some still remain underserved. There is no cancellation so far as aviation is a long term business and we can slow down deliveries. Some airlines have asked for this and we are working with them,'' Airbus EVP (market and contracts) Kiran Rao told TOI.
The increasing price of crude has led oil PSUs to hike aviation turbine fuel (ATF) prices every month since this April. Airlines have passed on this cost in terms of higher fuel surcharge and increased ticket prices have led to slowdown in growth of domestic traffic. Rao voiced his concern, saying:
European major still remains bullish on India as says the 'fantastic' growth rate of 20% in past few years
Airbus clients like Jet, Kingfisher-Deccan combine, GoAir and IndiGo, batted for relaxing norms for newer Indian carriers to fly abroad. '
10/06/08 Saurabh Sinha/Times of India

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Categories: Foreign Jun 2008, Indian Aviation- In General Jun 2008