Indian Domestic Aviation Market Performing Well, But On The Line Profits Claims Boeing

Posted on: Nov-2018 | By: Pro Market Reasearch | Aerospace & Defense

According to the American aircraft maker, Boeing, If profitability is overlooked in the overall performance of the aviation market, then the market is at an appreciable phase.

Vice President for Sales in Asia Pacific and India at Boeing Commercial Airplanes, Dinesh Keskar said, compared to the consecutive 3–4 Years average growth, last year recorded a maximum growth of 20% annually. At present the Indian aviation market is emerging at a great pace with 15% growth, but on the other side if focused on profitability the figures seem to be on the borderline.

The growth seems to be good so far, but factors such as demand on planes versus passengers, fuel price, and Rupee-Dollar exchange rates impact the profit figures of the overall operations.

Keskar stated that we monitoring the variations and continue to do the same and look forward to what can be done to eradicate the issue. It was assumed that Rupee would remain bit stable against the US Dollar so far. Keskar also evaluated one of the key reasons that were impacting the figures. This includes the strategy of oversupplying the planes in the industry which would help to give out the discount on fares to the customers.

Expansion of air routes and reduced travel time has ultimately forced the travelers to adopt air-based travel. Aviation companies offering hefty discounts on two-way trips along with various airport-based perks such as lounge accessibility is driving the growth of the global domestic aviation market. Reduced travel time, affordable airfares, growing spending ability of people, and growing fad of traveling and exploration are also some of the factors expected to motivate the growth of the global domestic aviation market.

However, rising operational cost and tough competition has somewhere restrained the growth of the market.