CAPA: Indian Airlines to Order 1,500+ Aircraft by 2025

DALLAS — CAPA - Centre for Aviation's Indian division has stated that Indian airlines are poised to place orders for 1,500–1,700 aircraft in the coming two years.

The CAPA forecast comes as Indian airlines combined have fewer than 700 aircraft, and current orders are at 800 aircraft. Our in-house analysts also note that deliveries are way beyond 2027 for A320neos and 737 MAX unless Indian carriers lease them, though no lessor has such a large number of aircraft available.

Regardless, CAPA India expects orders from the TATA Group-led Air India (AI), which has four subsidiary carriers, and IndiGo Airlines (6E). In the next two years, both entities expect to place orders for 500 aircraft, or roughly 60-70% of total orders.

Existing Fleet of Indian Airlines

India has around ten scheduled airlines, and they mostly operate narrow-body fleets. According to planespotters.net, Indian airlines largely have Airbus A320s and Boeing 737s.

India's largest carrier in both market share and fleet size is IndiGo Airlines (6E) with a fleet of 300 aircraft. While Air India (AI) has a fleet of 113 aircraft. Likewise, Spicejet (SG) has 75 aircraft, Go First (G8) has 59 aircraft, Vistara (UK) has 53 aircraft, AirAsia India (I5) [AIX Connect] has 28 aircraft, and Akasa Air (QP) has a fleet of 17 aircraft.

The CAPA India Report

CAPA India stated, “It could end up being the largest order in the global aviation industry, in terms of both the number and value of aircraft, which are anticipated to include a mix from the A320neo and 737 MAX families, as well as widebody airliners."

"Supply chain problems, which have hit the delivery schedule for airlines worldwide, are likely to subside by the end of 2023-2024 but the noteworthy backlog of orders could take years to manage," added CAPA India.

The twin-aisle market in India will also receive much-needed focus in India as AI is expected to place an order for around 70 wide-body aircraft. While QP and G8 will need to place scale stakes by entering into new orders with a sense of urgency. However, SG needs to actualize its existing order and organize for further development, said CAPA India.

Finally, the organization warned the industry by saying, "The industry should not be caught off-guard by the influx of capacity, and preparing for the pace of expected growth is critically important as well."

Do you think we are about to witness historical and record-breaking orders and deliveries from India Carriers, or is the CXAPA report wishful thinking? Do let us know in the comments on our social media channels.

Feature Image: Air India Boeing 787-8 Dreamliner. Photo: Roberto Leiro/Airways.

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