HYDERABAD. Boeing (NYSE:BA) projects demand for more than 1,600 new airplanes in India over the next 20 years, valued at $205 billion. The company briefed its 20-year market outlook for the country today at India Aviation 2014, forecasting India’s commercial aviation fleet will grow more than five times in size.
“India’s demographics are highly favorable to the growth of air transportation,” said Dinesh Keskar, senior vice president of Sales, Asia Pacific and India, Boeing Commercial Airplanes. “The share of India’s large population entering the workforce is growing. India could have the world’s fourth-largest economy if current trends continue helping drive demand for air travel.”
Boeing projects that passenger airlines in India will rely primarily on single-aisle airplanes such as the Next-Generation 737 and the 737 MAX, a new-engine variant of the market-leading 737, to connect passengers. Single-aisle airplanes will represent 83 percent of the new airplanes in the country.
For long-haul traffic, Boeing forecasts twin-aisle airplanes such as the 747- 8 Intercontinental, 777 and the 787 Dreamliner will account for 15 percent of new airplane deliveries. Boeing’s recently launched 787-10 and 777X also will support the demand for fuelefficient twin-aisle airplanes in India.
The 20-year forecast of airplane deliveries by airplane types is as follows:
India New Airplane Deliveries: 2013-2032
1,330 deliveries of Single-aisles valued at $132 billion
235 deliveries of Twin-aisles valued at $72 billion
35 deliveries of Regional jets valued at $1 billion
“India will continue to have one of the strongest, most vibrant aviation markets in the world over the next two decades,” said Keskar. “While passenger growth is recovering and we project a healthy aviation industry in the long term, adverse near-term trends of overcapacity, a weak rupee and high fuel prices will affect airline profitability in the near term.”
Globally, Boeing projects a $4.8 trillion market for 35,280 airplanes over the next 20 years, driven by an increase in deliveries from India, China and other emerging markets. That forecast represents the traffic growing at 5.0 percent annual rate over the next 20 years and the world fleet is expected to double by 2032.
Over 70 years ago, Tata Airlines flew the DC-3 aircraft in India, andsince then, the 747, 777, 737 and game-changing 787 Dreamliner airplanes. Boeing has been the mainstay of India’s civil aviation sector with airlines such as Air India, Jet Airways and SpiceJet.
Boeing traces its history to aviation pioneer William Boeing who, in 1916, built the company’s first airplane, a seaplane for two with a range of 320 nautical miles (515 km). Since then, Boeing has defined the modern jetliner and introduced the twin-aisle cabin, the glass cockpit and countless other innovations. Today, Boeing Commercial Airplanes offers a complete family of technologically advanced and fuel efficient airplanes.
© India Strategic