Boeing forecasts a $150 billion market for 1320 new passenger airplanes in India over the next 20 years as the economy aims for double-digit growth, stimulating strong demand for new and replacement airplanes.
"Robust growth with new economic prosperity amongst a massive Indian population, discretionary incomes, business progress and access to airports will increase airplane demand,” Boeing India President Dinesh Keskar said. "In 2011, the economy continues to do well. Indian air carriers are becoming profitable and we expect the GDP to maintain its upward trend in the long-term. As a result, both the air travel and air cargo markets will grow.” Keskar also said that airline revenue and yields were up, but high inflation and volatile fuel prices will play a pivotal role in the health of the industry.
Passenger traffic, which has reached 53.6 million domestic (fiscal 2011) and 13.1 million international, is expected to grow at 8.1 percent annually over the long-term.
“The economic and air-traffic growth will in turn stimulate demand for a variety of aircraft types,” Keskar said. “The need is great for new airplanes that can efficiently and profitably fly short and long-haul routes. This demand is driven by growth in developing and emerging cities, demand from low-cost carriers and the need to replace an aging fleet.”
The biggest demand will be for single-aisle airplanes. In that category is the Next- Generation Boeing 737, the most widely flown jetliner in the world. To keep up with demand, Boeing recently announced it will boost production to a record 42 737s per month by the first half of 2014.
Boeing airplanes currently dominate India’s long-haul international fleet, with 777s and 747s in service, soon to be joined by the 787 Dreamliner. “The super-efficient 787 will offer significant economic improvement for airlines, increased comfort for passengers and better environmental performance,” Keskar said.
India’s airlines have been growing rapidly by taking advantage of geography, demographics, airplane technology and well-coordinated growth and investment plans. Some carriers, like Air India also are looking for replacement airplanes as they retire aging and less-efficient jets. Boeing predicts that India-based airlines also will grow by responding to passenger preference for more flight choices, lower fares and direct access to a wider range of destinations.
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