Boeing India Sees No Slowdown In Aviation Demand From U.S., European Banking Crisis
As the Indian economy grows, it will become more than a hub for aviation on account of its sheer size and scale, Gupte said.
Boeing Co. does not expect the recent banking crisis in the West to have a major impact on demand in the aviation sector, which has bounced back strongly after the Coronavirus pandemic.
"It is too early to know the consequences of the bank crisis in the U.S. and Europe," Salil Gupte, president of Boeing India, told BQ Prime on the sidelines of a Confederation of Indian Industry event in Mumbai. "As of date, there has been no slowdown in the aviation sector demand."
Gupte highlighted that the aviation industry stunned the world with a quick turnaround post-Covid and there doesn't seem to be any end in sight for demand.
On Feb. 14, Air India Ltd. signed letters of intent with aerospace majors Airbus SA and Boeing to order a mix of 470 new single-aisle and widebody aircraft in a deal estimated to be valued at $70 billion. The 10-year deal is expected to transform the aviation landscape of India.
According to Gupte, the deal will allow Air India to regain its lost glory.
India is projected to be among the fastest growing economies in the world for the next 15 years, at 6.9%, in comparison to 5–5.4% for China over the same period. It will give aviation companies the advantage to grow in this region, the Boeing India president said.
As the Indian economy grows, it will become more than a hub for aviation on account of its sheer size and scale, Gupte said. "India is the gateway like China and once it will grow to be (in) the top four economies of the world, it will be more than a hub."
In the future, air taxis may become the preferred mode of transportation in congested cities like Mumbai, according to Gupte. "Unlike helicopters, they are extremely quiet and are also very green," he said. "Boeing's Air Taxis are pilotless and work through apps."
However, drones and planes flying in the same air zone will require integrated plane management systems for enhanced safety, he said.