Boeing invests in India to boost aerospace presence

Boeing Company is investing approximately $24 million in India to set up a logistics center for aircraft parts, according to Salil Gupte, President of the local unit. This move will enhance its presence in the country amidst a major airplane order. Tata Group, which now owns Air India, is expected to announce a substantial deal for nearly 500 jets worth over $100 billion at list prices, which will be split between Airbus and Boeing. Boeing’s share of the deal will include 220 planes, comprising 190 737 MAX narrowbody jets, 20 787 widebodies, and 10 777Xs.

India is a vital market for civil aviation

India is one of the most crucial civil aviation markets in the world and Gupte believes that the country will soon become the third-largest international market for aviation. With the new logistics center, Boeing aims to improve access to parts, thereby improving aircraft availability for airlines and reducing flight cancellations or grounding due to maintenance issues.

Boeing strengthens its foothold in India’s single-aisle market

Boeing’s investment in India comes at a time when the company is making significant inroads into India’s single-aisle market, the mainstay of Airbus, and winning orders from start-up airline Akasa Air and competitor SpiceJet. According to Boeing’s forecasts, India’s carriers will require 2,200 new planes over the next 20 years, and with narrowbody planes forming the bulk, Gupte expects this to be a key area of focus for Boeing.

“As India leads the world in economic growth and its middle-class expands, more and more people will fly,” said Gupte. “We need to ensure that our customers have the narrowbody aircraft they need to serve this growing market.”