Boeing Co said on Friday it would set up a facility in India to convert 737 passenger planes into dedicated freighters to tap into regional and global demand for the service.
The investment, which adds to the U.S. manufacturer’s expansion into India on top of a record plane order by flag carrier Air India, comes despite a global economic slowdown that has weakened the global air cargo market.
The International Air Transport Association (IATA) said global cargo demand in January fell almost 15% year-on-year. Air freight rates are 28% below the levels seen at the same time last year, data provider WorldACD said on Thursday.
