Upbeat on India, Boeing sees no cancellation, deferment

Mumbai: As the aviation sector is in a revival mode with airlines balancing capacity with growth, Seattle-based aircraft manufacturer Boeing is bullish on India sales, with no deferment or cancellation of aircraft orders from India expected this year. The company has flag carrier Air India, private carrier Jet Airways and low-cost SpiceJet as its customers, with a total order size of nearly $15 billion (around Rs 70,500 crore) for close to 100 aircraft.
Dinesh Keskar, president, Boeing International Corporation (India), had recently told media persons, “By the start of the next fiscal (FY10-11), there are good break-even chances for the domestic carriers in India,” adding that stabilising jet fuel prices, growth in economy, rational ticket pricing and cutting excess capacities will help the carriers return to profitability.
Explaining why Boeing is upbeat on its customer loyalty in India, Kiran Yadav, aviation analyst and director of Aerobiz International, said, “Aviation is a cyclical business with every slump followed by growth. Hence, after a tumultuous 2009, there are indications of recovery in the sector in terms oil crude oil stabilising in the medium term at $50 a barrel, lower operating cost and increase in passenger traffic..."
Data available on the Directorate General of Civil Aviation (DGCA) website indicates that airlines have started adding capacity since July 2009 which is 30% more than 2008.
09/01/10 Financial Express

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Categories: Foreign Jan 2010