Indian Mkt Needs Single Aisle Planes; Operational Expenses Challenging For Regional Jets: Boeing Exec

The executive was referring to the cost efficiency of operating single aisle or narrow body planes in the country

Indian Mkt Needs Single Aisle Planes; Operational Expenses Challenging For Regional Jets: Boeing Exec
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Maintaining the operational expense for regional jets becomes a bigger challenge, a senior Boeing executive said on Wednesday as he emphasised that the Indian market requires single aisle aircraft economics.

The executive was referring to the cost efficiency of operating single aisle or narrow body planes in the country.

With increased focus on air connectivity, especially to Tier 2 and 3 cities, regional jets is slowly gaining prominence and on Tuesday, Adani Group and Embraer announced plans to set up a manufacturing facility for such jets in India.

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At a briefing here on Boeing's latest commercial market outlook, its Managing Director of Commercial Marketing, Eurasia and Indian Subcontinent Ashwin Naidu mentioned about Cost per Available Seat Mile (CASM) or Kilometre (CASK) while responding to a query related to regional jets.

According to him, CASK is a challenge even with larger aircraft and it becomes an even bigger challenge with regional jets.

Noting that airports in India are already congested, Naidu pitched the idea of operating higher capacity aircraft.

Regional jets may look good in year one or year two of an operation but very quickly, the market outgrows the regional jet. That is why, ultimately, India's aviation market requires single aisle economics in order for it to make the equation.

As per the Boeing's commercial market outlook for India and South Asia released on Wednesday, airlines will need nearly 3,300 new planes during the period from 2025–2044.

The demand for regional jets is projected at less than 10 while it is the maximum for single aisle aircraft at 2,875 and for wide body planes at 395.

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