Boeing: India demand may dip by half after 2012
26 Jun 2008
Mumbai: In tune with prevailing winds buffeting the aviation sector, aircraft manufacturer, Boeing, has scaled down expectations from the Indian market saying it now expects orders to come down by half beyond 2012.
According to reports, senior Boeing officials now forecast that if the market would have placed orders for 60 aircraft earlier, realistic assumptions would now place the size of likely orders beyond 2012 at not more than 25-30.
According to Boeing India officials, airlines in India would also need to cut existing capacity by at least 10-12 per cent in order to tide over the current crisis. This, they said, would be in line with similar actions in the United States, where airlines are already cutting capacity by approximately 10 per cent.
Interestingly, officials said that so far there had been no cancellation or deferral of orders by domestic carriers.
According to reports, Boeing has helped low-cost carrier, SpiceJet, to sub-lease its deliveries to other buyers. This allowed it to shield itself from a possible deferment of five aircraft deliveries that the airline was scheduled to get over five months beginning this month.
Boeing's India order book totals 161 aircraft, split between Jet Airways, Air India and SpiceJet. Deliveries are scheduled till 2012.
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