Airbus doubles outlook

European aircraft maker Airbus on Tuesday doubled forecasts for India. Airbus had earlier said Indian carriers will acquire 222 aircraft (Airbus and Boeing combined) worth $17.5 billion up to 2019.

The prediction comes close on the heels of both national and private airlines announcing aircraft acquisition plans. Airbus hopes to corner over 50 per cent of the unfolding market developments.

John Leahy, chief commercial officer and global head of revenue, Airbus, while announcing the deal with Air Deccan, said that current trends reveal that the market will ask for both single aisle and widebodied aircraft. He added that forecasts are based on the fact that more low-cost carriers will enter and existing airlines will feverishly expand.

He said, "I see the balance between low-cost and other carriers at 40:60 in the coming years, similar to the situation in USA. In Europe, no frills airlines constitute about 20 per cent of total aircraft population, but it is heading towards the 40 per cent mark. Developing countries too will tread a similar path."

The bold prediction by Airbus is not surprising. Over the last fortnight, Airbus alone has netted 40 firm orders from Kingfisher Air (10 aircraft) and Air Deccan.

Besides, Indian Airlines has shortlisted Airbus for its proposed fleet expansion by 43. Air India is also close to finalising its 30-40 aircraft acquisitions.

Others in the fray include Jet Airways which is scouting for widebodied aircraft, low-budget airlines promoted by Nusli Wadia and Air India, besides international interest shown by Virgin Atlantic's Richard Branson and Easy Jet.

Leahy said, India has the potential to displace Malaysia from the second slot in Asia and inch closer to China.