India lost 9 percent of its airline seat capacity as a result of Kingfisher suspending operations since October 1, 2012, when its 66-aircraft fleet was grounded, according to Dinesh Keskar, Boeing’s senior sales vice president for Asia Pacific and India. Speaking at the Aero India show in Bangalore this week, Keskar said that in the short term, with capacity still constrained, profit margins will improve for some airlines, but that some low-cost carriers may find themselves negatively impacted because traffic growth is slowing. “Supply and demand is [now] in balance and India is seeing steady growth,” he commented. Boeing says it still believes in its most recent Current Market Outlook, which sees Indian airlines needing 1,450 new airplanes valued at $175 billion over the next 20 years. Outstanding orders from the Indian market for Boeing include 21 787s for Air India, plus 44 737s for Jet Airways and 1 for SpiceJet.
