Fuel, currency, and low fares – compared to other aviation markets in the region – are three major challenges faced by airlines in India even as the country’s aviation sector is on path to recovery from Covid pandemic, a top official of airplane maker Boeing said on Friday.
Aviation fuel in India is 90 per cent higher when compared to Middle East and Africa, Asian and Oceania, and North America. About 70 per cent of airlines operational costs are priced in US dollars. Though the Indian rupee was stable through the pandemic, this continued to be a watch item, said Dave Schulte, Managing Director, Regional Marketing, Boeing Commercial Airplanes.
Addressing a news conference on the sidelines of Wings India 2022 here to announce Boeing’s commercial outlook for India for the next two decades, he said that India has the lowest average fares for similar distances and demands in other markets in the region.
If the fare for Delhi-Mumbai route is $60, it is $150 to $200 higher in Japan and China for the same distance. Schulte said he believes that new generation aircrafts from Boeing, like 737MAX and 737-10, can help Indian carriers with low fuel burn and lower seat costs respectively.