Budget airlines IndiGo and SpiceJet will invest in new aircraft, buoyed by decreasing fuel rates and high passenger traffic.
The 430 planes ordered by IndiGo are the Airbus A320 Neo (new engine option). This upgraded version of A320 is said to cut fuel consumption by 15 per cent.
Dinesh Keskar, senior vice president for Asia Pacific and India sales for Boeing Commercial Airplanes says, “SpiceJet is talking about ordering 100 planes for the first time, while IndiGo has ordered 430 planes (over the next 10 years).”
The other factor concerning both the airlines is the falling value of the Indian Rupee against the US Dollar.
With growing passenger traffic, Disneh Kesakar is hoping for a balance in demand and supply.
He says, “It is when we have over capacity, which has been the case over the majority of the past decade in India, that is when the problem starts because people do fare wars. Right now we are quite pleased with where the Asian markets are concerned. Airlines have been in pretty good shape for the last four quarters.”
Akanksha Maker
