With the country aiming for double-digit growth, expects India to order up to 1,320 new passenger aircraft in the next 20 years for as much as $150 billion, stimulating strong demand for new and replacement aircraft.
Releasing the latest outlook for the Indian market, Boeing India President Dinesh Keskar says, ”Robust growth with new economic prosperity amongst a massive Indian population, discretionary incomes, business progress and access to airports will increase airplane demand.”
In August a year ago, the U.S.-based airframer forecast that India would need 1,150 passenger aircraft worth $130 billion by 2030.
Keskar says, “In 2011, the economy continues to do well. Indian air carriers are becoming profitable, and we expect the gross domestic product to maintain its upward trend in the long term. As a result, both the air travel and air cargo markets will grow.”
Air traffic in India jumped 18% in the January-May period to 24.5 million passengers. By contrast, It grew 19% in all of 2010 to 52 million passengers.
“The economic and air-traffic growth will in turn stimulate demand for a variety of aircraft types,” Keskar says. “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.”
Boeing says the biggest demand will be for single-aisle aircraft. To keep up with demand, Boeing recently announced it will boost production of its next-generation 737 to a record 42 units per month by the first half of 2014.
Boeing currently dominates India’s long-haul international fleet withand in service, soon to be joined by the 787.
“The super-efficient 787 will offer significant economic improvement for airlines, increased comfort for passengers and better environmental performance,” Keskar says.
India’s airlines have been growing rapidly by taking advantage of geography, demographics, aircraft technology and well-coordinated growth and investment plans.
Boeing’s customers in India include(India) Ltd., national carrier and SpiceJet. In July last year, SpiceJet placed a $2.7 billion order for 30 -800s, which will be delivered from 2014 through 2019.
Some carriers, like Air India, are also looking for replacement aircraft as they retire aging and less efficient jets. Boeing predicts that India-based airlines will also grow by responding to passenger preference for more flight choices, lower fares and direct access to a wider range of destinations.
Air carriers will focus on offering more flights using more efficient aircraft, rather than using significantly larger jets.
Globally, Boeing forecasts a $4 trillion market for new aircraft over the next 20 years with a significant increase in deliveries. The company sees a market for 33,500 new passenger aircraft and freighters between 2011 and 2030.
Passenger traffic is expected to grow at 5.1% annually over the long term, and the world fleet is expected to double by 2030.