Indian carriers are expected to see an infusion of $1.3 billion (R7,761 crore) or more in the next few months as a result of foreign investments, a report by aviation consultancy firm Centre for Asia Pacific Aviation (Capa) has said.
“This estimate of funds includes $700-750 million of investment in equity in up to three Indian airlines, including Jet Airways, and a further $550-600 million in additional financial assistance such as access to foreign exchange loans at lower interest rates and sale-and-leaseback income from assets such as aircraft and airport slots,” the report said.
Capa said there was a possibility of low-cost carrier SpiceJet switching manufacturers.
“SpiceJet is currently in negotiations with both Boeing and Airbus for 30-40 narrow-body aircraft of the re-engined MAX and neo types and a decision is expected shortly. SpiceJet’s current narrow-body fleet is all-Boeing. There is a possibility of the carrier switching to A320s and eventually A320neos,” it said.
Jet Airways, it added, had reportedly signed an order for 50 B737 MAX aircraft and discussions with Airbus for an A320neo order for Jet Konnect are expected to conclude shortly, possibly after the deal with Etihad is formalised.
The domestic aviation market is expected to grow at 4-6% in 2013-14, while global traffic could expand at 10-12%, it said.