Chicago, IL-headquartered Boeing sees cost control as central to coping with rising operating costs, and will offer cost effective aircraft that are more fuel efficient and have lower maintenance costs.
Dinesh Keskar, Boeing Commercial Airplanes’ senior vice-president of sales for Asia-Pacific and India said, “What we are seeing is a constant need for, number one, cost reduction, because the fares [in India] we are paying today to fly from A to B are continuously going lower and lower,” he says. “We have to find ways by which we can create airplanes and create operational economics so that the airlines can still make money in that tough environment. [Because] what happens for the airlines is that fuel prices is something that they can’t control and that is a major component of their cost…”
Keskar’s comments come as airlines in India have to deal with high fuel costs, which account for 40% of their total expenses.
