Boeing recently announced that it expects an order of more than 2,000 aircraft from India in the next two decades which will bring almost $290 billion for the company.
This was announced by Dinesh Keskar, Senior Vice President for Boeing Commercial Airplanes who stated that commercial aerospace demand in India is rising or growing at an unprecedented rate. “The increasing number of passengers combined with a strong exchange rate, low fuel prices, and high load factors bodes well for India’s aviation market, especially for the low-cost carriers,” Keskar added. The company has also predicted a demand for more than 40,000 aircraft globally in the next twenty years.
The country is known to be one of the fastest growing markets in the aviation industry following a rising number of domestic passengers at a rate of more than 20% during the past couple of years. India has also changed its aviation industry rules last year allowing some domestic airlines to freely and easily outside the country making their own travel industry expand to other cities through fare cuts and the establishment of more airports.
According to Boeing, these potential orders can be a mixture of the single-aisle 737 and 737 MAX. Boeing also happens to be one of the top airplane manufacturers in the country although only premium airlines carry Boeing planes and accounts for only 40% of the whole travel industry.
Just last week, the company released its second quarter earnings report that met most analyst estimates sending its shares 2.79% higher during the pre-market trading. This was due to the company reporting an upbeat earnings report along with a higher outlook for its earnings for the rest of the year.
For its second quarter earnings, the company posted a profit of $1.76 billion on earnings of $2.89 per share versus most estimates of $2.57 per share. However, the company reported an 8% decline in its second quarter earnings coming in at $22.7 billion slightly missing estimates at $23 billion.
The company raised its full-year earnings outlook from having previously predicted it to come at a range of $9.20 – $9.40 to $9.80 – $10.00 per share while it maintains its forecast of delivering almost 765 commercial aircraft for the whole year. Currently, the company has been able to deliver 183 aircraft during the second quarter and a total of 352 aircraft this year so far.
In other Boeing news, the company recently pleaded to the U.S. International Trade Commission that it is being harmed with so called unfair trade practices after Delta Airlines reportedly ordered around 75 units of Bombardier’s latest C series which is being sold below their usual selling prices.