Mumbai: Aircraft maker Boeing expects the UDAN scheme to be beneficial for the company, but is concerned about the slowdown in the growth of Indian airlines.
“The Indian aviation industry is growing at a double-digit rate; however, profitability is at risk. Fare levels need to go up slightly for airlines to break even,” said Dinesh Keskar, Senior Vice-President, sales, Asia Pacific, for Boeing on the Indian aviation industry.
Speaking about the UDAN scheme and its importance to Boeing, Kesker added: “The UDAN scheme will start with smaller planes in smaller cities, but in the long run, it will be beneficial to us because even if the growth is not 15 or 20 per cent in five years, the market size will double; which means 70-seater planes can be replaced with a 140-seater. That’s where a Boeing 737 can be used, and then the operator can go open up another route with a smaller plane, and the bigger plane can be used on the existing route in these smaller cities.”
Last month, Boeing had said India would need around 2,300 aircraft — valued at $320 billion — in the next 20 years.
Of this, 78 per cent would be the 737 A320 type with lower capacity of between 130-150 seats, and the others will be the widebodied 777 and 787, which have a capacity of between 230-350 seats.
28/01/19 Forum Gandhi/Business Line
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“The Indian aviation industry is growing at a double-digit rate; however, profitability is at risk. Fare levels need to go up slightly for airlines to break even,” said Dinesh Keskar, Senior Vice-President, sales, Asia Pacific, for Boeing on the Indian aviation industry.
Speaking about the UDAN scheme and its importance to Boeing, Kesker added: “The UDAN scheme will start with smaller planes in smaller cities, but in the long run, it will be beneficial to us because even if the growth is not 15 or 20 per cent in five years, the market size will double; which means 70-seater planes can be replaced with a 140-seater. That’s where a Boeing 737 can be used, and then the operator can go open up another route with a smaller plane, and the bigger plane can be used on the existing route in these smaller cities.”
Last month, Boeing had said India would need around 2,300 aircraft — valued at $320 billion — in the next 20 years.
Of this, 78 per cent would be the 737 A320 type with lower capacity of between 130-150 seats, and the others will be the widebodied 777 and 787, which have a capacity of between 230-350 seats.
28/01/19 Forum Gandhi/Business Line
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