Agreed we are late but we will deliver what we have promised: Boeing on Dreamliner

High fuel prices, lower load factors and adverse exchange rates have been the reasons for the airlines losses. Airlines should raise their fares by 15 per cent to survive,” said Dinesh Keskar, President, Boeing India. “The challenges are there in the airline industry but the air traffic is growing at a rapid rate in India despite problems like fuel price and capacity. There were more than 60 million passengers in 2011 and we are expecting it to reach up to 69 million in 2012.” Keskar said this while addressing a press conference on the inaugural day of India Aviation 2012, and added that the market had gone down in 1998 too, but we had recovered and we will recover this time too. “The US is not doing that great and the market is becoming bigger in Asia-Pacific.”

The long awaited Boeing 787 Dreamliner arrived at Hyderabad via Delhi on March 13 and can be seen on static display at the show in Air India’s red, white and orange colours. And if Boeing is to be believed, the Dreamliner would be in the Air India’s kitty in the next quarter of this year. Boeing will complete delivery in the next five years. The Dreamliner powered with Rolls-Royce engine had received the FAA certification last year, and at present FAA is reviewing the Air India 787s which are powered with GE engines. “The certification will come soon,” said Keskar.

On being asked about the compensation package Boeing would be paying to Air India for the delay in delivery of the Dreamliners, Keskar said that it is between Boeing and Air India and cannot be disclosed. “We agree we are late, but we know we will deliver what we have promised.”

Speaking further about the Dreamliner, he said that the Boeing 787 Dreamliner is the first airplane to provide both long distance capabilities with mid-size capacity. “The airplane offers unparalleled operating economics, fuel efficiency and passenger comfort. More than 800 787s have been ordered by 60 customers across the world. The aircraft is made with composite material and not aluminum and hence help us provide higher humidity, saving passengers from fatigue during long flights.”

The 787s will burn 20 per cent less fuel and have lower airframe maintenance costs, larger cabin space, more head rooms, better lighting, reduced cabin noise, etc. Pilots flying the 777 will need only five days of training to fly the 787 and Boeing will be providing them training at Singapore, Seattle and Gatwick.

The Boeing India President said that Air India has both the options of EXIM financing and sale lease back options to get the Dreamliners in case of paucity of funds. “It is your desire whether you rent or purchase a house. We believe the government is working towards it.”

Updating about the maintenance repair and overhaul (MRO) centre in Nagpur, Keskar said that construction work is on since January last year and 1,700 people are working on it now. “We will finish the work by November this year, ahead of schedule.”

Boeing at present has a backlog of 100 aircraft in India, including 10 787s for Jet Airways, 27 787s for Air India, 30 737s for Spice Jet, 43 for Jet Airways and three from Air India. The company at present has 870 orders from 59 customers across the world and according to Keskar, Boeing is jam-packed with work and if any customer places orders now, it would take them at least seven to eight years to deliver the product.