Aviation

Boeing expects Indian airlines to buy despite losses

INDIA
Despite Indian carriers suffering losses topping Rs 10,400 crore in fiscal 2012/13 and a slump in demand for air travel, US aircraft maker Boeing has not downgraded estimates for commercial airplanes required in the Indian market in the long term.

“Indian market requires 1,450 new commercial jets, valued at about $175 billion, over the next 20 years and we are not reducing that forecast,” Dinesh A. Keskar, Senior Vice President, Sales, Asia Pacific & India, Boeing told Business Today on the sidelines of a media interaction.

But Keskar said Boeing is carefully studying the performance of the market and “will see about the next year. There are significant losses from the carriers in the results traded on the stock markets and we clearly see the adversity is higher,” he said. Boeing said airline losses in India are primarily on account of factors that are not in control of the airline companies.

“We tackled it (reason for losses) and we have understood why? The why (for airlines not making money) is the fact that fuel price today is an all time high and the exchange rate has affected the airlines. Forty per cent operating cost of an airline is in fuel and when it continues to grow bigger along with the rupee hitting lower levels, airlines have very little leeway,” the Boeing executive said.

Read the full report here, Business Today

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