Exclusive: Boeing looks forward to invest and partner more in India

Boeing on Friday signed an agreement with GMR Aero Technic to establish a new Boeing Converted Freighter (BCF) line in Hyderabad. This is a historic first for India as GMR Aero Technic has been awarded an Indefinite Delivery Indefinite Quantity (IDIQ) contract to convert 737-800 passenger aircraft to 737-800BCF freighter configuration. The facility will support conversions of both domestic and foreign aircraft. CNBC TV18 caught up with Salil Gupte, President, Boeing India on the sidelines.

- What does the agreement mean for Boeing? What is the timeline and initial targets?

Boeing is binging Passenger to Freighter Conversion line to India which makes it the fourth location after China, UK and Costa Rica to perform B737 BCF program. This program will cater to 737 NG Aircraft which will get converted to a freighter aircraft. The line will transform a used passenger Aircraft to a cargo aircraft through modifications like cutting a hole for the cargo door, surround structure etc. Initially we have a timeline of 18 months for assembling the line, the first aircraft rollout to depend on the orders that are received. Till now we have delivered over 100 converted Freighter aircraft & 737 is a preferred aircraft in the narrow body segment. India will get a next level capability not only for domestic airlines but will also serve the entire Asian region.

- What's the outlook on conversions and what are your initial expectations?

During the pandemic there was a fast pickup on cargo movement and there is growth in the segment. At least 1720 passenger-to-freighter conversions are forecasted for the next 20 years. Out of those 1200 conversions are expected for narrow body aircraft. 20 percent demand for Europe, 30 percent demand for North and South America and rest 50 percent demand for other regions is forecasted. India has an opportunity in the region to convert a good number of aircraft into freighters. There is a trend of increase of E Commerce, and there is high level manufacturing happening in India which are the growth drivers. We see a great opportunity for India as the cargo market develops further.

- What more announcements are expected for India?

There are many new projects in the pipeline for India. We received an iconic Air India order which is transformational not only for Air India, but it's transformational for the entire country. India has great capability in terms of industrial capital. Boeing looks forward to invest and partner more in India.

- What's the level of pending order?

We have pending orders over 1000 and there are more orders on the way. India can expect 2000 new Aircraft coming in over the next 20 years. We want to deliver as many aircraft as we can to both defense and commercial customers. Supplychain is a constraint, it will not return to health tomorrow, it will take two years to return to normalcy We are focusing on transparency with our suppliers, on rates, requirements, and after market needs. We are transparent with our customers as well.