Aviation Industry Won’t Face Turbulance for Too Long
July 24 – Even as major airlines across the world plan to cut air routes to low load destinations, in the face of rising fuel costs, Dinesh Keskar, Senior Vice-President – Sales, Boeing Commercial Airplanes, feel that after this turbulant time, India's aviation industry will see smooth sailing.
The current downturn in the Indian aviation industry would end in the next 10 to 12 months as the sector reduces flights and resolves overcapacity issues, said the US-based aircraft manufacturer Boeing told the Hindu Business Line.
Declaring the Boeing’s market outlook for India in 2008, Mr Dinesh A. Keskar, Senior Vice-President, Sales, Boeing Commercial Airplanes, said that the Indian carriers can resolve the overcapacity problems by flying to smaller towns and expanding overseas operations.
“The solution is not in grounding the aircraft but optimizing their usage. One definite good news for the industry is that not much capacity is being inducted this year,” Mr Keskar said.
Maintaining that passenger traffic growth in India will remain bullish, he said, that the demand for air travel will match the high rate of economic growth in the country.
According to Boeing’s 2008 forecast, the air travel in India will grow at an average rate of 8 per cent annually over the next 20 years, the fastest pace in the world, and more than twice the global average, he said.
In its annual outlook, Boeing forecast that India will need 1,001 new aircraft worth $105 billion by 2027.
The maximum increase will come in for commercial planes in the 100 to 400 seat categories, the company said.
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