LONDON – Boeing has forecasted that India, which has a rapidly expanding Aviation Industry, will need 2,300 new planes over the next 20 years, worth a total of $320 billion. The expansion has been heavily influenced by Low-Cost Carriers (LCCs).
On average, throughout 2018, over 10 million passengers have traveled by air within India. The country has received 51 months of double-digit growth within its aviation sector, according to Boeing’s Commerical Market Outlook (CMO).
Boeing has forecasted that 90% of these new planes will be single-aisle planes. It adds that 1,950 new single-aisle planes will be needed for India, worth $222 Billion.
The Other 10% comprises widebody jets, which Boeing estimates India will need about 350 of these, worth $100 billion.
By 2037, Boeing expects India to have more than 5% of the global aircraft fleet—a sizeable increase based on today’s standards.
The aviation industry, in general, will continue to be a growth powerhouse for the country. Over the next 20 years, India will also need $430 billion worth of flight training, engineering, and maintenance services.
Dinesh Keskar, senior vice president of Sales for Asia Pacific and India, Boeing Commercial Airplanes, said that to meet this increased domestic air traffic growth, “we see the vast majority of available airplane seats coming from LCCs. The success of this market segment will mean more than 80% of all new aircraft deliveries in India will be single-aisles. And the superior economics and fuel efficiency of the new 737 MAX aeroplane will be the perfect choice for Indian carriers.”
“The Indian economy is projected to grow by nearly 350% over the next two decades to become the third largest economy in the world,” Keshar added. “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.”
This forecast shows that Boeing has tremendous confidence in the Indian aviation market, especially as it is something that will be set to expand exponentially over the next 10-20 years.
We will no doubt see a lot of new airlines emerging as well as sizeable orders coming down the line from other potential competitors who wish to penetrate that market.
It will be interesting to see whether the Air India situation turns in a positive direction and whether the country’s flag carrier will be able to retain its title as new competitors arise.