Airbus, Boeing eyeing cargo planes market in India

Bangalore, Feb 7 (UNI) Just when the government is thinking of hiking foreign direct investment (FDI) cap in cargo operations from 49 to 74 per cent, aircraft manufacturers Boeing and Airbus have started eyeing the India freighter market with increased focus.

Airbus officials say they expect a demand of 165 freighter planes in India over the next 20 years.

''There's a large, frustrated, pent-up demand for cargo planes,'' said Mr Kiran Rao, executive vice-president for marketing and contracts for Airbus.

''There is a strong economic growth coupled with progressive market liberalisation which is fuelling the demand.'' Mr Rao, who is here for the Aero India 2007, said he is very upbeat about the India market for passenger and cargo planes.

Airbus' customer for passenger aircraft include Indian, Jet Airways, GoAir, Indigo, Air Deccan and Kingfisher.

Echoing similar views, Mr Dinesh Keskar, senior vice-president for sales at Boeing Commercial Airplanes said, ''With strong economic growth, we'll be pleasantly surprised when the freighter plane market expands. We haven't even scratched the surface yet.'' Civil aviation minister Praful Patel recently said the government will soon allow foreign airlines to pick up equity stake in Indian cargo airlines.

At present, the country has only five cargo aircraft with the remaining traffic being picked up by foreign airlines.

UNI