Prince Mathews Thomas Moneycontrol News
The trying circumstances in the aviation industry hasn't impacted orders or delivery of aircraft, said a top official of American manufacturer Boeing.
None of the airlines, including the crisis-hit Jet Airways, have asked for a change in delivery schedule, said Dinesh Keskar, Senior Vice President of sales, Asia-Pacific and India, at Boeing Commercial Airplanes.
"It is not that easy to change delivery schedule," Keskar told Moneycontrol on the sidelines of the Global Aviation Summit in Mumbai.
"It is a very finely defined production system. It is very expensive to change that. We can do it (change in delivery schedule) three years in advance, before we start making them. But not otherwise," added Keskar, who has been spearheading the world's largest aircraft maker in India for the past two decades.
Even if there is a change at Jet Airways, Keskar said, "somebody will take over, will handle the deliveries. We hope so".
The Naresh Goyal-led airline had last year received first of its Boeing 737 Max, which it had ordered in 2015. In total, Jet Airways has ordered 150 737 Max aircraft, which promise to reduce fuel costs by up to 15 percent.
Jet Airways has been hit by a combination of high costs and low air fares, that has forced it to delay salary payments to pilots; and the airline also defaulted on loan repayments in the December quarter. Faced with the debt of over Rs 8,000 crore, Jet Airways has a stiff repayment schedule, which includes payment of about Rs 1,700 crore by March.
Reports have pointed out some of Jet's lessors have become impatient due to non payment of dues, and may think of taking back planes. The carrier has a fleet of 124 aircraft, some of which have been grounded.
Fortunately for Jet, the airline doesn't directly shoulder the payment of a new aircraft, as it follows a sale and lease back model. Under this, Jet sells new aircraft to a leasing company, and then leases it back.
Aviation market
Keskar remains bullish about the Indian aviation market, despite the present problems. Boeing has estimated that the domestic market, the fastest growing in the world, needs 2,300 aircraft worth $320 billion over the next 20 years.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
