Boeing bets on Freight boom in India

HAVING done an estimated business of $18 billion and received orders for as many as 150 planeseither outright sale or leasein just two years, Boeing is expecting more orders from India in the coming years.

Last week, Boeing received an order of 10 new planes worth $700 million from the private Indian carrier Spice Jet. Dinesh Keskar, vice-president of Sales, Boeing Commercial Airplanes, told The Indian Express that the company is expecting another ‘‘big’’ order from another private Indian carrier within a fortnight.

And with the fast-expanding Indian aviation sector market, Boeing is now expecting the next phase of bulk orders for planes from freight carriers. ‘‘India has emerged as a big player for us,’’ Keskar said. In 2005, 10 per cent of the total Boeing’s business was from India.

The largest of the order received by Boeing is from the national Indian carrierAir Indiawhich ordered for as many as 68 planes last December. Among other major bulk orders include 20 each from Jet Airways and Spice Jet, including 10 it received last week, and 3 from Indian Air Force.

‘‘You will have to wait for two more weeks to disclose one more order,’’ Keshkar said. It will be 737 planes, he added, without divulging the name of the airline.

In addition to this Boeing has leased a large number of new aircraft to various airlines in India, he said. ‘‘In all it comes to about 150 aircraft and in terms of dollars it will be pushing close to $18 billion,’’ Keshkar said.

The first airplane of this batch, he said would be delivered in November this year. ‘‘Last year in the year 2005 the Air-India order was the largest Indian order,’’ he said.

As part of the AI deal, Boeing will create a maintenance and training facility in India, as well as a pilot training centre. ‘‘More importantly, we have committed to buy back goods and services worth $1.7 billion from India. One of the biggest things is to start discharging our business obligation,’’ he said.

Under this Boeing is looking at buying parts for its aircrafts like doors, various machine parts, IT sector and engineering services. Keskar said Boeing was working with Indian companies like Hindustan Aeronautics Ltd, Infosys and Tata Consultancy Services.

He added more private airlines would be ordering wide-bodied airlines because of the economics of carrying more passengers in same amount of fuel and crew cost. Air India has done it and other airways are planning to do it.