Boeing Exec Warns Of Potential Troubles In India's Av Sector | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 10.31.14 ** HD iPad-Friendly -- Airborne 10.31.14 **
** Airborne 10.29.14 ** HD iPad-Friendly -- Airborne 10.29.14 **
** Airborne 10.27.14 ** HD iPad-Friendly -- Airborne 10.27.14 **

Fri, Sep 01, 2006

Boeing Exec Warns Of Potential Troubles In India's Av Sector

Announcement Tempers Optimism

Just the other day... Aero-News reported on Boeing's decision to build a maintenance facility in central India. At that time, Boeing said it foresees the need for more than 850 new commercial aircraft in India over the next 20 years.

So why, then, is Boeing suddenly worried about the financial well-being of the commercial aviation industry in India?

"The losses in the Indian aviation industry is a cause for concern. It needs to be checked otherwise that will be a potential disaster for the industry," Boeing's senior vice president of commercial plane sales in the region, Dinesh Keskar, told the Press Trust of India.

Warning about a possible disaster in the making, Boeing says low-cost carriers are cutting it too close. The fares charged by LCCs, combined with the rising cost of fuel, mean even though they're flying record numbers of passengers... the LCCs are losing money.

The losses are spread across the board -- from Air Deccan, to SpiceJet, to Jet Air.

"In the next 12 months there could be consolidation," Keskar said. "They have to increase fuel surcharges and look at ways of selling seats at differential prices so that low yields from cheaper ones could be offset by those from the higher priced seats," he said.

Boeing -- perhaps concerned about losing potential customers -- has gone on the offensive -- by stating either fares need to go up... or else there will be a consolidation in the Indian marketplace. And that wouldn't bode well for Boeing's substantial order book in the region.

Despite the warning, however, Keskar still managed to sound optimistic.

"Boeing forecasts a long term requirement for increased passenger traffic in which airlines significantly add frequencies with smaller aircraft to meet demands," Keskar said. "We also see a considerable increase in the air freight market that will need to support the country's exports, which are growing at an estimated 5-6 percent a year for the next 20 years."

We'll see.

FMI: www.boeing.com

Advertisement

More News

Airborne 10.29.14: Antares Launch Failure, GAMA Responds, Another 'Roadable'???

Also: Dragon Returns, Quadcopter Flown At Airliner?, Classic Aero-TV: Redhawk, Diesel Flt School Airplanes, WWII Bomber Found The unmanned Antares rocket built by Orbital Science C>[...]

Classic Aero-TV: ‘Have it Your Way!’ – The SPA Panther

A New Single-Seat SportPlane Shows Great Potential For Serious Fun While at the Sport Aviation Expo 2014, ANN CEO and Editor-In-Chief, Jim Campbell stopped by to talk with Dan Wese>[...]

AD: Bombardier, Inc. Airplanes

AD NUMBER: 2014-21-07 PRODUCT: Certain Bombardier, Inc. Model CL-600-2C10 (Regional Jet Series 700, 701, & 702) airplanes, Model CL-600-2D24 (Regional Jet Series 900) airplanes>[...]

AD: Airbus Airplanes

AD NUMBER: 2014-21-10 PRODUCT: Certain Airbus Model A330-200 and -300 series airplanes, and Model A340-200 and -300 series airplanes.>[...]

ANN's Daily Aero-Linx (10.31.14)

Ex-MACs This group is made of retired McDonnell Engineers, most of whom began their careers at MAC either on the F101, F3H or F4H programs.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC