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 Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 07.18.16

Airborne 07.19.16

Airborne 07.20.16

Airborne 07.21.16

Airborne 07.22.16

Airborne Hi-Def On YouTube

Airborne 07.18.16

Airborne 07.19.16

Airborne 07.20.16

Airborne 07.21.16

Airborne 07.22.16

Tweet Us The Coolest Things You See @OSH16!
#OSH16Coolest!

It's Alive!: AirVenture 2016 Innovation Preview on Vimeo!

It's Alive!: AirVenture 2016 Innovation Preview on YouTube!

 

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 07.22.16: ONE Aviation New Jet, Drone Pilot Nabbed, Stemme Twin Voyager

Also: AEA Giveaway, 44 Trips To OSH, Airbus Drones, Future Pilots, NTSB Training, Air BP, Boeing Forecast, ALPA Milestone ONE Aviation has provided ANN with the initial outline for>[...]

It's ALIVE! 2016 AirVenture Innovation Preview Program Debuting RIGHT NOW!

Get The EARLY Inside Details On THE Most Exciting NEW Innovations And Product Announcements From OSHKOSH... The staff of EAA and the Aero-News Network are pleased to announce that >[...]

EAA Raises The Bar -- Accessible Safety STC Adds More Aircraft, More Devices

STC Can Be Ordered Online Starting Right Now We knew it was coming and we're glad to see it coming along so well and siwiftly... EAA has announced several much anticipated updates >[...]

Airborne 07.21.16: KC46 Update, Fly A P40 at AirVenture?, Runway Conditions

Also: ANN 2016 Oshkosh Schedule, Airplane Efficiency, Federal Excise Tax, A320neo, Jet Demos, 100+ Exoplanets, CFM's $8.2B Deal The KC-46 Pegasus aerial tanker program moved closer>[...]

Teens With Drone Help Solve Boat Theft

Followed The Suspects As Far As They Could And Alerted Police Two teenagers with a camera-equipped UAV helped police catch some suspected boat thieves this week on Camano Island in>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC