'Working closely with SpiceJet on aircraft deliveries': Boeing India head

Latest outlook shows the global forecast is playing out largely as Boeing projected last year, says Salil Gupte.

Boeing bagged last November got an order form Akasa Air for 72 737 MAX aircraft, but it is not a smooth ride entirely for the US planemaker.

It has been unable to deliver 787 aircraft to customers due to production flows. Its main customer in India, SpiceJet, is facing financial challenges. Rival planemaker Airbus has intensified its efforts to  sell A350 aircraft to Indian airlines. Boeing India president Salil Gupte tells Aneesh Phadnis and Arindam Majumder on how the company is dealing with challenges and its plans for growth.

Domestic air traffic has seen a rebound in February and March. What’s your outlook for capacity and demand in 2022 in the backdrop of rising jet fuel price and increase in fares?

The latest commercial market outlook (CMO) shows the global forecast is playing out largely as Boeing projected last year – demand for domestic air travel is leading recovery, with intra-regional markets and long-haul travel’s return to pre-pandemic levels by 2023 to 2024. The India domestic traffic is performing better and is forecasted to be double of pre-pandemic levels in a decade. South Asia’s air travel sector is dominated by the Indian market, which accounts for about 90 per cent of the region’s passenger traffic. India’s continued economic growth and its expanding middle class will fuel demand across South Asia for 2,400 new commercial jets valued at nearly $375 billion during the 20-year forecast period, according to Boeing.

How many aircraft are you looking to deliver to your customers in India? Can you share details about aircraft type and customers? Do you foresee deferrals and have your customers already indicated that?

The number of aircraft and deliveries are determined by customer fleet requirements. We have a range of airplanes that provide a diverse set of capabilities to airlines based on evolving requirements, and we are always talking with current and potential customers about how we can best support their fleet and operational needs.

The number of wide body planes in India declined after the collapse of Jet Airways. Boeing has been unable to supply its 787 aircraft to customers since last June. Vistara too has been impacted. What is the outlook for widebodies in India this year?

We are completing comprehensive inspections across 787 production and supply chain, while holding detailed, transparent discussions with all stakeholders, including our customers and suppliers. We are taking the time needed to ensure conformance to our exact specifications. While these efforts continue to impact deliveries, we’re confident this is the right approach to drive stability and first-time quality across our operations and to position the Dreamliner for the long term as market demand recovers. And that long-term market demand is strong – Indian carriers will need 240 new widebody airplanes such as the 787 Dreamliner.

How is Boeing supporting SpiceJet? What is the status about deliveries of Max aircraft to the airline? There seems to be a blame game over delays in induction of Max aircraft by SpiceJet?

The SpiceJet order is for 155 new 737 MAX airplanes, and purchase rights for 50 additional airplanes, of which 13 have been delivered. Last year, SpiceJet announced the reintroduction of Boeing 737 MAX to its fleet and will induct 50 Boeing 737 MAX planes by 2022-23. We continue to closely work with the customer to evaluate the delivery schedule.

Last year Boeing decided to produce vertical fins for 737 Max aircraft from its JV facility in Hyderabad. It is also making aerostructures for Apache helicopters. What’s the progress? Can you share data on deliveries? Are new investments being planned as Boeing looks to expand production of 737 Max aircraft?

Our joint venture with the Tatas,Tata Boeing Aerospace Limited (TBAL), in Hyderabad, is already in its sixth year of operation, and is producing aero-structures for Boeing’s Apache helicopter, including fuselages, secondary structures, and vertical spar boxes for Indian and global customers, including for the U.S. Army. The fuselage of the contracted six Apaches for the Indian Army will be built at the state-of-the-art TBAL manufacturing facility right here in India.

TBAL recently delivered its 150th Apache fuselage from its Hyderabad facility. Last year, TBAL also added a new production line to manufacture complex vertical fin structures for the 737 family of airplanes – a significant milestone for the joint venture. The vertical fin is a complex structural part and the new production line is in the process of incorporating cutting-edge robotics and automation in manufacturing. This will enable skill development and employment opportunities in high technology manufacturing in Telangana.

As for investments, building up local aerospace and defence capabilities and capacity is at the core of our strategy. We continue to look for opportunities and are investing across the aerospace and defence ecosystem, in training, skilling, and manufacturing through our large and growing network of 275 supplier partners, as well as in services.