The same report also states that India will need 1,740 new airplanes, valued at $240 billion over the next 20 years.
Aircraft maker Boeing on Thursday released a projection report, claiming that due to falling fuel prices, the loss per seat for airlines on Mumbai-Delhi route has come down to Rs 395 in May 2015 from Rs 1,221 during the corresponding period last year.
The same report also states that India will need 1,740 new airplanes, valued at $240 billion over the next 20 years.
The report titled 'India Current Market Outlook' was released by Dinesh Keskar, senior vice president of Asia Pacific and India - Boeing commercial planes, at a city hotel.
According to the statistics in the report, the domestic airfare has seen about 23% fall during the period from May 2014 to May 2015. In monitory terms, the average airfares during May 2014 were between Rs 6,009 to Rs 7,230. In comparison, they have come down between Rs 5,592 to Rs 5,987.
The fuel prices have decreased by about 33% from their October 2013 peak. Yet, the airlines in India pay up to 50-60% more than the carriers in the US and other countries due to higher taxes, the report adds.
The report goes on to point out that the largest demand from airlines in India is for single-aisle planes as passengers want better frequency. In turn, the airlines are looking for smaller aircraft but enhanced frequency to their destinations.
"The Indian market is highly competitive and airlines are adapting with added capacity, moderate pricing discipline and new business models such as growing number of low cost airlines" added Keskar.
According to Boeing's estimate of 1,740 new aircraft requirement by airlines in India, about 1,460 would be for single-aisle planes, valued at over $160 billion.
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