India will need 2300 new airplanes over the next 20 years, predicts Boeing
Dec 20, 2018: India will require 2,300 new aircraft worth $320 billion over the next 20 years, said US based commercial jets and freighters manufacturer Boeing, as it raises last year’s prediction of demand of 2,100 jets until 2036.
The manufacturer cites unprecedented domestic passenger traffic and rapidly expanding low-cost carriers (LCCs) as the reasons for the increase in jets demand.
Revealing India’s air traffic statistics, the company informs, “This year alone, more than 10 million passengers, on average, traveled within India each month.”
According to Boeing's Commercial Market Outlook (CMO), India's commercial aviation industry has achieved 51 consecutive months of double-digit growth. This growth is matched in other sectors of the country's economy.
With more than five percent of the world's fleet expected to operate in India by 2037, services will continue to be a major driver of growth in the region's commercial aviation industry.
Commercial services such as flight training, engineering and maintenance, digital analytics among others will provide airlines with optimal operational efficiencies as they continue to expand to meet growth in the marketplace.
"To meet this increased domestic air traffic growth, we see the vast majority of available airplane seats coming from LCCs," said Dinesh Keskar, senior vice president of Sales for Asia Pacific and India, Boeing Commercial Airplanes.
Dinesh Keskar of Boeing speaking at the MRO South Asia Summit 2018 in Delhi
The new raised forecast reveals that Boeing sees maximum demand for single-aisle aircraft type. It forecasts 1,940 airplane deliveries for such aircraft type by 2037.
"The success of this market segment will mean more than 80 percent of all new airplane deliveries in India will be single-aisles. And the superior economics and fuel efficiency of the new 737 MAX airplane will be the perfect choice for Indian carriers."
"The Indian economy is projected to grow by nearly 350 percent over the next two decades to become the third largest economy in the world," said Keskar.
"This will continue to drive the growth of India's middle class and its propensity to travel both domestically and internationally, resulting in the need for more new fuel-efficient short- and long-haul airplanes."
In the South Asian market, including India, Boeing forecasts a commercial services market valued at $430 billion over the next 20 years.