Boeing announces $24 million investment for new logistics centre in India
The new facility will aid Boeing’s plan to increase its market share in India’s narrow-body aircraft industry and satisfy rising local carrier demand.
According to Reuters, the prominent US aircraft maker Boeing has revealed intentions to invest almost $24 million to establish an airplane parts logistics hub in India.
According to Salil Gupte, president of Boeing India, the anticipated investment is intended to assist the company’s objective to expand its footprint in the South East Asian nation.
The decision was made just days before the projected $100 billion contract for over 500 aircraft between the largest aircraft manufacturers in the world, Boeing and Airbus, and the erstwhile national carrier of India, Air India, which is today owned by the Tata Group.
According to Gupte, “India is one of the most significant civil aviation markets in the world, and that means there’s going to be a huge opportunity in both narrowbody and widebody aircraft.” He also noted that the new centre will provide the company with quicker access to aircraft parts, which will improve the availability of aircraft for airlines and decrease flight cancellations or groundings due to maintenance requirements.
The new facility’s ambition is to capture a larger portion of India’s narrow-body aircraft market is also expected to be reinforced by the new facility, especially in light of the rising demand from regional airlines notably India’s newest airline, Akasa Air, and its nearby rival, SpiceJet.
The news follows Boeing’s previous statement that it would eliminate almost 2,000 white-collar jobs in finance and human resources and outsource some of those positions to contractors in India.