Operating regional jets in India poses a growing challenge due to high costs, a senior Boeing executive said on Wednesday, underlining the need for single-aisle aircraft economics in the country’s rapidly expanding aviation market.
Speaking at a briefing on Boeing’s latest commercial market outlook, Ashwin Naidu, Boeing’s Managing Director for Commercial Marketing, Eurasia and the Indian Subcontinent, highlighted the cost efficiency of single-aisle or narrow-body aircraft. He said that while regional jets may appear attractive in the initial years of operation, the market quickly outgrows them.
“Regional jets may look good in year one or year two of an operation, but very quickly the market outgrows the regional jet,” Naidu explained. “That is why, ultimately, India’s aviation market requires single-aisle economics for operations to be sustainable.”
Naidu also pointed to the Cost per Available Seat Kilometre (CASK) as a major factor. Maintaining operational costs for regional jets becomes a bigger challenge even compared to larger aircraft, he said, stressing that higher-capacity planes are more suited to India’s busy and increasingly congested airports.
The comments come amid renewed interest in regional aviation. With a push to improve air connectivity to Tier 2 and 3 cities, regional jets are gradually gaining attention. On Tuesday, the Adani Group and Embraer announced plans to set up a manufacturing facility for regional jets in India, signalling a potential expansion in the sector.
Boeing’s outlook for India and South Asia predicts strong growth over the next two decades. Airlines in the region will need nearly 3,300 new aircraft between 2025 and 2044, with single-aisle planes accounting for the bulk of demand at 2,875 units, wide-body aircraft at 395, and regional jets projected at fewer than 10.
Speaking at a briefing on Boeing’s latest commercial market outlook, Ashwin Naidu, Boeing’s Managing Director for Commercial Marketing, Eurasia and the Indian Subcontinent, highlighted the cost efficiency of single-aisle or narrow-body aircraft. He said that while regional jets may appear attractive in the initial years of operation, the market quickly outgrows them.
“Regional jets may look good in year one or year two of an operation, but very quickly the market outgrows the regional jet,” Naidu explained. “That is why, ultimately, India’s aviation market requires single-aisle economics for operations to be sustainable.”
Naidu also pointed to the Cost per Available Seat Kilometre (CASK) as a major factor. Maintaining operational costs for regional jets becomes a bigger challenge even compared to larger aircraft, he said, stressing that higher-capacity planes are more suited to India’s busy and increasingly congested airports.
The comments come amid renewed interest in regional aviation. With a push to improve air connectivity to Tier 2 and 3 cities, regional jets are gradually gaining attention. On Tuesday, the Adani Group and Embraer announced plans to set up a manufacturing facility for regional jets in India, signalling a potential expansion in the sector.
Boeing’s outlook for India and South Asia predicts strong growth over the next two decades. Airlines in the region will need nearly 3,300 new aircraft between 2025 and 2044, with single-aisle planes accounting for the bulk of demand at 2,875 units, wide-body aircraft at 395, and regional jets projected at fewer than 10.
