Boeing forecasts an aviation boom in India

India will need 856 aircraft worth $72.6 billion in the next 20 years, the Seattle-based Boeing said, even as it committed an investment of $2 billion in the country in various areas of civil aviation. "Our investment will include $185 million towards pilot training, engineering services and maintenance, repair and overhaul facility," said Dinesh A. Keskar, senior vice president for sales for Boeing Commercial Airplanes. "We have also committed an investment of $1.7 billion in offsets, including the sourcing of engineering services from Hindustan Aeronautics and software from firms such as Infosys, Wipro and Tata Consultancy," Keskar said. "In fact our simulator for pilot training has already arrived in Mumbai and will be in operation by the end of this month," he added on the margins of the Aero India show at the Yelahanka air force base in Bangalore.

The $100 million maintenance, repair and overhaul unit is coming up at Nagpur and will mainly cater to the needs of Air India, while the pilot training unit will be located in Mumbai and operated by a subsidiary - Alteon. Boeing officials said thanks to the impressive orders worth $19.7 billion placed by Indian aviation companies in 2005 and 2006, the country was among the top five markets for the group. "India was a small blip in the global aviation map. Now it is driving the civilian airplane market," Keskar said. "The strong economic growth, emergence of low-cost carriers and major airport revamp plans are the factors driving growth." While Air India placed the largest orders for 68 aircraft, Jet Airways was next with 30, followed by SpiceJet with 20, Air Sahara with 10 and three from the Indian Air Force to ferry the president, prime minister and other important dignitaries.

Keskar said Boeing was also bullish on India emerging as a major market for cargo planes, but said there was no immediate forecast available for this segment of commercial aviation. So was the case with business jets, he said. Giving a break-up of the types of aircraft India will need, the Boeing official said 676 of these worth $44.29 billion would be for single-aisle products, followed by 120 twin-aisle types worth $25.41 billion. Further, the demand is forecast at 51 regional jets worth $1.45 million, the larger aircraft like 747s may only account for nine units worth $1.45 billion, Keskar, who has been in India for each of the six air shows, added. Boeing is also supporting pilot training in a $10 million initiative marked for schools run by the Indian government. "There is a tremendous shortage of pilot in India. We need a pipeline of cadets."

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