Air Sahara signs $700 mn deal with Boeing
In a bid to regain market share and shore up capacity, Air Sahara on Monday announced placing firm orders for 10 Boeing 737-800 aircraft worth around $700 million with US aircraft major Boeing, which has projected a $72 billion jet plane market in...
By TNN |
NEW DELHI: In a bid to regain market share and shore up capacity, Air Sahara on Monday announced placing firm orders for 10 Boeing 737-800 aircraft worth around $700 million with US aircraft major Boeing, which has projected a $72 billion jet plane market in India over the next 20 years.
To be delivered from mid-2009 onwards over a two year period, the induction of new aircraft would help the airline reach its target of capturing 20% market share over the next five years, said Mr Alok Sharma, president, Air Sahara.
Air Sahara's current fleet of 19 Boeing aircraft are on long-term lease. The new aircraft would be deployed both for domestic and international operations, Mr Sharma added.
The airline currently has a market share of around 8% which it plans to increase to around 12% by December this year. As per current estimates, the airline will need a fleet of around 75 aircraft to command a 20% market share over the next five years, Mr Sharma said.
About financing of the $700 million deal with Boeing, he said the airline will look at all options available, including loans from the US Exim Bank. Air Sahara also received its 19th Boeing 737-400 on Monday and would be getting the 20th one in September.
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Commenting on the growth prospect of the Indian civil aviation industry, Dr. Dinesh A Keskar, Boeing’s senior vice president of sales for south and Southeast Asia said, the country would require 856 new commercial jet airplanes worth over $72 billion over the next 20 years. Mr Keskar also said Boeing would be investing $75 million in providing flight simulators for pilot training, which include a grant of $10 million to refurbish flying schools in India.
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