India's aviation market is growing "very well" but the profitability is on "borderline", a senior official at American aircraft maker Boeing has said.
India’s aviation market is growing “very well” but the profitability is on “borderline”, a senior official at American aircraft maker Boeing has said. Dinesh Keskar, Senior Vice President for Sales in Asia Pacific and India at Boeing Commercial Airplanes, said last year, the market grew 20 per cent per annum based on three to four years average. The Indian market is growing “very well” at 15 per cent but the airlines profitability is on borderline, observed Dinesh Keskar, Senior Vice President for Sales in Asia Pacific and India at Boeing Commercial Airplanes. “The growth is doing good,” he said at the ongoing Singapore Airshow. “Right now, the airlines’ profitability is just on the borderline,” he cautioned, citing fuel price, Rupee-Dollar exchange rate and supply and demand on planes versus passengers.
“We have to watch this and we will continue to watch and see the amendments we need to make,” said Keskar. He felt the Rupee was stable against the US dollar as of now. Keskar was also monitoring the supply and demand scenario in the industry, pointing out that oversupply of planes in the industry could lead to discounts in fares, resulting in negative impact on the industry. Boeing will start delivering from this July quarter its orders of 155 aeroplanes to SpiceJet and 75 planes to Jet Airways.