Supply chain issues may hit new airlines' launch plans, says Keskar

Nagpur, Jan 9 (PTI) The upcoming airlines in the domestic market may take several years to launch operations due to the limited availability of aircraft at present amid the on-going supply-chain issues, a top former Boeing executive said on Friday.

Addressing the students during a Leadership Talk at the Indian Institute of Management (IIM) Nagpur, former senior vice president for sales at US aircraft major Boeing Co, Dinesh Keskar, also said that the domestic aircraft manufacturing is currently not feasible as shortage of skilled manpower remains the biggest challenge.

"Although the central government has granted approval to new airline companies, it may take several years before they can actually begin operations, due to limited availability of aircraft," Keskar was quoted as saying in a release.

The major aircraft manufacturers globally already have orders booked till 2032, he said.

The government last month granted NOC to two new airlines - Al Hind Air and FlyExpress - after the massive operational disruptions at IndiGo.

Keskar said, "Even if an order is placed with Boeing today, its delivery will take around six years. So, starting operations immediately will not be easy for new airlines." He also noted that the new tariffs imposed by the Trump administration will have a limited impact on the global aircraft industry, as aerospace parts are exempted from tariffs.

The issue is also likely to get resolved soon reducing concerns for the aviation sector worldwide, according to him.

While the number of air travellers in the country was increasing rapidly, domestic aircraft manufacturing was currently not feasible, he said.

"Government approvals and infrastructure alone are not enough, the shortage of skilled manpower remains the biggest challenge," Keskar said.

He further said that land, electricity, and water may be available, but highly-skilled engineers and technicians are not easily found.

"This is why Boeing has only two aircraft manufacturing facilities globally - both located in the United States," he explained.

Boeing has been working on a 12-seater electric aircraft, calling it a fascinating idea that could become a game changer for the aviation industry, though it will take time to become a reality, he said.

Keskar also expressed concern over the growing dominance of a single company in India's aviation market.

On the recent crisis in the domestic aviation sector, Keskar said, "The concerned airline (IndiGo) controls a major part of India's airline market...whenever a monopoly develops in any sector, it inevitably creates problems." During the session, he also shared insights on global trade dynamics, emerging aviation technologies, and electric aircraft.

Reflecting on his personal journey, he spoke about his childhood in Amravati and his engineering education at Visvesvaraya National Institute of Technology (VNIT) Nagpur, highlighting his emotional connection to the Vidarbha region. PTI CLS IAS NP