Despite the global meltdown, Boeing, the world's largest manufacturer of commercial and defence aircraft, said on Tuesday there is no cancellation in its orders from India and assured to deliver aircraft on schedule to its buyers including Air India, the official national carrier.
"We have zero cancellation from India. We have been working carefully. We sold $25 billion worth of aircraft in the last three years. Hundred more are to be delivered in the next five years which is valued at $17 bn," Dinesh Keskar, the newly appointed president of Boeing India, who takes over his new responsibilities from March 1, told a press conference on the eve of Aero India 2009 event in Bangalore.
Boeing's major buyers in India, Air India, Spice Jet and Jet Airlines have not made any cancellation, Keskar said. "I don't expect any cancellation. We are gearing up to deliver a big order for 68 aircraft by Air India."
Striking an optimistic note about the Indian economy recovering in the fourth quarter of this year, as it has maintained a 'good GDP growth' of about seven per cent, Keskar also hoped that Indian aviation sector, "which is not making profit" currently, should see a turnaround following dropping fuel prices from $140 per barrel to around $40.
"India is on a much better footing. Because of this its recovery should also be faster unlike in USA. India should see an upturn in the fourth quarter of this year," he said.
The present zero fare and Rs 9 fare are not good for airlines, Keskar said.
Keskar, who will be responsible for leading the company's efforts to expand its local presence, said Boeing expected revenues to grow to $105 bn in the next 20 years from commercial aircraft sale. There is $31 bn potential in the defence sector in the next 10 years, he added.
"We are facing challenging times in aviation sector. However we are still bullish on commercial side", he said.
India had 150 aircraft 10 years ago and now has 350, Keskar said, pointing to the high growth witnessed by the aviation sector in the country.
Boeing is building infrastructure in India, he said and referred to the collaborative partnerships it has with HAL, TATA and BEL. Boeing has also delivered three aircraft for VVIP travel to Indian Air Force, Keskar said.
Vivek Lall, Boeing vice-president and India country head, integrated defence systems, said his company has signed an MOU for supply of eight maritime patrol vehicles to Indian Navy. "We want to make India a destination for global supply chain," he said.
Boeing is displaying F18 aircraft, besides their 'flying display' at the Aero India show beginning in Bangalore on Wednesday.