Page 18 - AAA MARCH - APRIL 2014 Online Magazine

FEATURE BOEING

Boeing Hopes for More 787 MAX Orders

By Jay Menon

closE on thE hEEls of inking a $4.4 Neither Boeing nor Jet could confirm is growing. India could have the world’s
billion deal to sell 42 single-aisle 737 MAX nor deny it. “We don’t want to comment fourth-largest economy if current trends
aircraft to low-cost carrier SpiceJet, U.S. now on market speculation,” was the continue helping drive demand for air
air-framer Boeing says it is hopeful of response from a Boeing executive. travel,” he adds.
bagging orders from other Indian carriers Keskar says currently, Boeing has For long-haul traffic, Boeing forecasts
for the similar airplane. 1807 firm orders for the new 737 MAX twin-aisle airplanes such as the 747-
“We are talking to Jet Airways and Air aircraft from 60 countries. 8 Intercontinental, 777 and the 787 will
India and they have shown keen interest in Boeing projects that passenger account for 15% of new airplane deliveries.
the new 737 aircraft…We are hoping for a airlines in India will rely primarily on “Boeing’s recently launched 787-10
good news,” Dinesh Keskar, senior vice single-aisle airplanes such as the Next- and 777X also will support the demand
president sales for Asia Pacific at Boeing, Generation 737 and the 737 MAX, a new- for fuel-efficient twin-aisle airplanes in
tells Asian Airlines and Airports. engine variant of the market-leading 737, India,” Keskar says.
Globally, Boeing projects a $4.8 to connect passengers. During the next 20 years, Boeing expects
trillion market for 35,280 airplanes over “These new 737 aircraft are the ideal India may take deliveries of 1330 single-
the next 20 years, driven by an increase and natural choice of Indian carriers, who aisle aircraft worth $132 billion, while 235
in deliveries from India, China and other are hurt by high fuel costs, as these aircraft twin-aisle aircraft worth $72 billion will
emerging markets. are 14% more fuel efficient compared with be delivered during the period. Demand
That forecast represents the traffic our earlier version of 737s,” Keskar says. for regional jets will increase and 35 such
growing at 5% annual rate over the next Boeing projects demand for more than aircraft will be delivered to the country at a
20 years and the world fleet is expected to 1,600 new airplanes in India over the next cost of $1 billion, the forecast says.
double by 2032. 20 years, valued at $205 billion. “India will continue to have one of the
Unconfirmed reports indicate that Briefing its 20-year market outlook for strongest, most vibrant aviation markets in the
leading private airline Jet Airways may the country at India Aviation 2014, Keskar world over the next two decades,” says Keskar.
soon sign a deal to buy around 50 737 says India’s commercial aviation fleet will “While passenger growth is recovering
MAX at a cost of about $5 billion. The grow more than five times in size. and we project a healthy aviation industry
proposed order for 50 airplanes are “India’s demographics are in the long term, adverse near-term trends
reportedly already listed in Boeing’s order highly favorable to the growth of air of overcapacity, a weak rupee and high
backlog under business with undisclosed transportation…The share of India’s fuel prices will affect airline profitability in
customers category. large population entering the workforce the near term,” he points out.

18 ASIAN AIRLINES & AIRPORTS MARCH / APRIL 2014 WWW.ASIANAIRLINES-AIRPORTS.COM