Boeing India President Says Indian Aviation Sector's Robust Growth Momentum To Continue

Calling the Indian aviation industry's growth among the fastest in the world , Boeing's Salil Gupte noted that this growth was expected from the Indian industry.

Gupte called for a continuation in the rationalisation of fuel taxes, saying that the cost of fuel for Indian airlines is far higher than many airlines outside India.

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Aircraft manufacturer Boeing assured that the Indian aviation industry’s growth fundamentals remain strong and the rationalisation of fuel taxes along with consistent investments in infrastructure will help keep the growth momentum robust. 

During an interview with PTI in Gwalior, Salil Gupte, Boeing India President, added, “We see no slowdown (in India) and we continue to see very high load factors, extremely high rates of profitability amongst the airlines and we see extremely strong demand for aeroplanes as we have seen in some of the largest orders ever placed in the world. Overall, we see that demand grows. We are also seeing significant advancements in infrastructure as new terminals come up... new greenfield airports come up...That is going to be a boon to Indian aviation.” 

The US aircraft maker has received orders for hundreds of aircraft from Indian airlines and has also announced multiple investments, including $100 million for training the pilots in the country. 

Calling the growth of the Indian aviation industry ‘one of the fastest in the world’ , Gupte noted that this growth was expected from the Indian industry and now it is happening in a ‘very real way’. He stated that Indian airlines currently have about 1,500 planes on order. Notably, Air India placed an order for 470 aircraft earlier this year, including 220 planes from Boeing. 

Talking about the future of the industry, the Boeing India head noted that Indian airlines will require over 2,200 aircraft in the next two decades. To be able to realise the growth potential of the industry, the executive said some components need to be ‘put in place, including ensuring that there are enough pilots and mechanics to fly all these aeroplanes’. 

Elaborating on the human capital requirements of the industry, Gupte said, “That is going to require significant skilling, it is going to require us to train 37,000 pilots and 38,000 mechanics over the next 20 years. That is one reason why Boeing has announced a USD 100 million investment in pilot training, which includes infrastructure and curriculum... in India to ensure that we are doing our part to skill those pilots. This is also the reason why we are entering into maintenance training partnerships among our partners to ensure that we have enough skilled mechanics in India as well.”

Calling for a continuation in the rationalisation of fuel taxes, Gupte noted, “There has been good progress made with states in the last few years but we need to continue to make that progress, especially in some larger states, so that the rate of taxation of jet fuel can come down closer to the global level. Right now, the cost of fuel for Indian airlines is far higher than many airlines outside India. That needs to be done to tap the growth as well. Then the continued investments in infrastructure.”

Notably, ratings agency ICRA said earlier this month that India’s domestic air passenger traffic is expected to be on the upward trajectory in the current fiscal year. The estimated growth in the segment is around 8 to 13 per cent, touching nearly 150 to 155 million passengers in the current financial year.