Air Sahara on Monday placed firm orders for ten 737-800 aircraft worth $700 million with US aircraft major Boeing, which has projected a $72 billion jet plane market in India over the next 20 years.
"The delivery of these brand new aircraft will start by the middle of 2009 and will be completed in the following two years," Air Sahara President Alok Sharma, accompanied by Boeing senior vice-president (sales) Dinesh Keskar, told reporters in New Delhi.
Asked about the financing plans for the new orders, Sharma said, "There are enough options and instruments available for financing aircraft purchase...the US Exim Bank provides loans. There are other options also available."
He said these ten aircraft were meant for both domestic and international operations of Air Sahara, which is eyeing a 20 per cent market share in the next five years.
Air Sahara also received its 19th Boeing 737-400 today and would be getting the 20th one next month.
Sharma said the airline, which currently has a market share of about 8 per cent, planned to increase it to 12-13 per cent by December.
The ten 737-800s would be fitted with blended winglets to improve fuel efficiency. The single aisle aircraft would be able to seat between 162-189 passengers and fly 260 nautical miles at a stretch, implying destinations in South East Asia and Maldives.
Keskar said these aircraft could also be replaced at a later stage by 737-900 ERs (extended range).
Replying to questions, Keskar said, "We announce orders placed with us only when the requisite deposits have been made in our banks and Air Sahara has done it."
Commenting on the growth prospect of the Indian civil aviation industry Keskar said the country would require 856 new commercial jet airplanes worth over $72 billion, over the next 20 years.
"Boeing forecasts a long term requirement for increased passenger traffic in which airlines significantly add frequencies with smaller aircraft to meet demands," he said while releasing the company's 2006 India Current Market Outlook.
"We also see a considerable increase in the air freight market that will need to support the country's exports, which are growing at an estimated 5-6 per cent a year for the next 20 years," he said, adding in the next four to five years, the growth could be as high as 20 per cent.
Keskar also said Boeing would be investing $75 million in providing flight simulators for pilot training.
While the first simulator is for 737 aircraft and is expected by this year-end, the second one would be commissioned next year. A simulator each for 777 and new generation 787 would be added by 2008.
He said the $75 million investment would include a grant of $10 million to refurbish flying schools in India and was in talks with the government on the matter.
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