Boeing Expects To Deliver Two Aircraft A Month To Indian Airlines This Year

Boeing said on Thursday that it expects to deliver two aircraft a month on average this year and that delays will persist "for a while" amid ongoing supply chain issues that have slowed the capacity growth of Indian carriers.

"We delivered about two aeroplanes a month on average to India last year and we expect to continue that pace this year and then grow slightly as we move forward," said Salil Gupte, President, Boeing India and South Asia.  "We're laser-focused on executing the plan. We're also in constant conversations with our customers about what aircraft they are going to receive when."

The US aerospace giant is facing multiple challenges—including regulatory scrutiny related to safety concerns and a recent strike among some of its factory workers—which have hindered its aircraft production.

The slowdown in production has impacted airlines’ growth plans, including those of the Air India group and Akasa Air, which collectively placed orders for 446 Boeing aircraft in recent years. However, as of now, Boeing has delivered only about 65 of these aircraft, according to industry estimates.

"We have gone very slow coming out of the strike, working on safety and quality…we realise that it’s been very hard being a Boeing customer for the last couple of years, and we are dead set on making sure that we perform,” said Ryan Weir, commercial sales and marketing, India and South Asia, Boeing Commercial Aeroplanes. Worse than the delay is the unpredictability of the delivery schedules, he said. "While delays are likely to continue for a while, what we are currently trying to fix is that airlines can count on the delivery dates provided and actually receive their aircraft on time. That's really the singular focus at Boeing right now."

Weir also noted that currently the Indian airline chiefs are less interested in discussions about any new aircraft development by Boeing and are more focused on the timely delivery of planes already ordered. "The CEOs in India don't want to hear Boeing talking about the next new airplane right now. They want to talk about—when am I getting my deliveries? And again, that goes back to our focus, which is on meeting our commitments."

In Nov. last year, Air India's Chief Executive Officer Campbell Wilson had said that the airline had to "recalibrate" its ambitious growth plans due to delays in aircraft deliveries and supply chain disruptions. Some deliveries of already-manufactured Boeing 737 MAX jets that were earlier scheduled by December 2024 were likely to stretch up to June this year. Also, there are line-fit aircraft—to be built specially for Air India—facing delays.

India and South Asia will need 2,835 new planes by 2043—a near fourfold increase, according to Boeing's market outlook.

"About 90% of 2,835 will come to India specifically," Gupte said. Currently, Indian airlines have about 700 planes in their fleet.

The continued growth will be fuelled by greater demand and a rise in air traffic, which will grow about 7.4% annually over the next two decades, primarily driven by sustained economic growth, a burgeoning middle class, improved connectivity and policies that support air travel liberalisation.

"Domestic air traffic is expected to remain the fastest-growing globally," said Ashwin Naidu, Boeing managing director of commercial marketing for India and South Asia.

Demand for pilots, cabin crew and technicians will also quadruple to 1.29 lakh along with commercial airplane fleet expansion, representing the fastest growth rate of any region globally, according to Boeing.

"There's a need for 37,000 pilots required over the next 20 years, and to meet that target we need to bring more women pilots on board," Gupte said.

He also revealed that Boeing is working closely with the Indian government to produce aircraft in India, without divulging further details when asked about a timeline to launch its Made-in-India aircraft.