Boeing Corporation today sounded bullish about the Indian aviation sector, the fastest-growing market in the world in terms of passenger traffic, saying the country will need as many as 1,850 new airplanes worth USD 265 billion over the next 20 years.
The Seattle-based aircraft maker had last year predicted a demand for 1,740 new airplanes valued at USD 240 billion over the next 20 years.
This rising demand will be driven by single-aisle planes such as the 737 Max and Next-Generation 737s from Boeing and A320 Neos from its arch rival Airbus, according to Dinesh Keskar, Senior Vice-President for Asia Pacific and India, Boeing Commercial Airplanes.
He was talking to reporters here while releasing Boeing's 'Current market outlook for India' report.
Giving a break-up of the demand, Keskar said single-aisle planes (that have 90-230 seats) will lead the chart with a demand for 1,560 aircraft worth USD 180 billion, followed by 280 wide-body ones worth around USD 85 billion that can carry over 200 passengers.
Regional jets with 10-seater capacity will constitute 90 units out of the total demand, or around USD 1 billion in value.
This will make India contributing to over 4.6 per cent of the global demand for 39,620 airplanes by 2035, and 4.5 per cent of world demand in terms of value, Keskar said, adding these new planes will continue to support growth of low-cost carriers and replace older ones.
Attributing the bullish outlook to the new aviation policy, favourable demographics and low fuel prices, Keskar said, "India continues to have a strong commercial aerospace market and the highest domestic traffic growth in the world."
"With the new aviation policy in place, we see even greater opportunities and remain confident in the market and the airlines here," he said, adding "lower fuel prices, economic expansion, competitive fares and rising incomes of the large middle class are helping boost air-travel demand."
Keskar also commented on the government's regional connectivity push, saying even as it has capped prices, the promise of refunding 80 per cent of losses, if any, will help the airlines drive the business.
The upbeat outlook comes after the country's domestic air
traffic grew 18.8 per cent in 2015 to 80 million, which is the fastest in the world, as per the latest IATA numbers.
Domestic carriers like the largest player IndiGo, GoAir and SpiceJet have been ordering new planes in the hope demand will stay strong and the country will become the third-largest civil aviation market in the world after China and the US by 2026.
Earlier this month, low-cost carrier GoAir, which is planning an IPO, ordered 72 A320neo planes from Airbus, while Jet Airways had ordered 75 Boeing 737 Max last November.
IndiGo has placed an order for 240 planes, the largest in aviation history, from Airbus.
While refusing to share its market share in India, Keskar told
