Projected GDP growth rate shows that India will be one of the biggest aviation markets of the world
Global aircraft manufacturers -Boeing and Airbus - are optimistic about the Indian aviation market potential over the next two decades keeping an eye on the projected GDP growth rate and recovery in the passenger growth rate, thereby, ignoring the short term hiccups like sliding rupee value and rising fuel costs.
Over the next 20 years, Boeing projects demand for more than 1,600 new airplanes in India valued at $205 billion. Out of these, 35 will be regional jets, 133 single aisle and 235 wide bodied aircrafts.
The company briefed its 20-year market outlook for the country on Thursday at the 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 poised to become the world's fourth-largest economy and second largest defense market outside the USA," Keskar predicts.
Further dwelling on the teething issue of Boeing's 787 Dreamliner, Keskar said that the Airline Control Centre in USA is monitoring all the 124 Dreamliners flying for different airlines across the world and could pinpoint any trouble even before the concerned airline could do. Allaying fears, he said that so far 73,000 flights have flown carrying 13.3 million passengers in these fuel efficient flights.
Commenting on the safety concerns following the last week 's missing Malaysian MH370 flight, Keskar said "we share every concern and are eagerly waiting for the safety of passengers and coordinating all efforts in the direction". He was talking on the sidelines of an event at the ongoing India Aviation -2014 at Begumpet airport, Hyderabad.
Globally, Boeing projects demand for 35,280 airplanes over the next 20 years valued at $4.8 trillion, driven by an increase in deliveries to India, China and other emerging markets. Boeing's forecast represent the traffic growing at 5.0% annual rate over the next 20 years and the world fleet to double by 2032.
Addressing the media, Joost Van Der Heijden, head of marketing (Asia) Airbus, said India needed over 1,290 aircraft worth $190 billion over the next 20 years.
"Indian carriers will require a much upgraded number between now and 2032," he said.
Airbus puts Indian annual passenger traffic growth rate of 8.6%, over and above the regional Asia Pacific average growth rate of 6.1% and world average of 4.7%.
Outlining the findings at India Aviation 2014, Airbus said the new passenger aircraft include 913 single aisles like A320 and A320neo family, 322 twin aisles like A350 XWB and A330 and 56 large aircraft such as the A380.
By 2032, the current fleet of aircraft will more than triple to some 1,233 aircraft. Airbus has forecast that 36% of India's fleet will be wide bodied, more than double from the current level. India currently has 170 Airbus aircraft in service and the number is bound to increase particularly in the A 320 category following new entrants such as Tata-SIA and Air Asia into the market.
Airbus India CEO Srinivasan Dwarakanath said that the DGCA approval of A380 operations in India would pave way for increased regional air hubs and regional connectivity promoting mining, infrastructural and tourism industries.
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