2100 aircraft by 2020 for India
Boeing has forecast that India will require 2100 new airplanes worth $290 billion by 2020. Dinesh A. Keskar, Senior Vice President-Sales Asia Pacific & India, Boeing, discusses factors boosting the country’s growth.
QTell us about Boeing’s forecast on the India market? Based on factors like GDP growth in India, fuel price and exchange rates for next 20 years, India will need 2100 aircraft worth $290 billion. This is the highest forecast we have shown for India and we are quite bullish on the Indian market because of many factors that are prevalent here. Commercial aerospace demand in India continues to grow at unprecedented rates. The increasing number of passengers combined with a strong exchange rate, low fuel prices and high load factors augurs well for India’s aviation market, especially for the Low Cost Carriers. Apart from outlook for 2020 other findings showed traffic growth in India is more than 20 per cent, far exceeding the global average of 7.3 per cent.
QPlease throw some light on the current aircraft on order by Indian carriers?
We are basically a dominant player in wide body market. We have Air India operating 24 787-8 Dreamliner aircraft and we have three more to be delivered by October this year. Air India also operates 777300ER and they will be getting delivery of three more aircraft in the early part of 2018. Jet Airways is currently operating ten 777300ER and have ten 787-9 on orders from Boeing. In terms of single-aisle market, we have a large order of 205 aircraft from SpiceJet and 75 MAX aircraft orders from Jet Airways, both of which will be delivered in one year time period.
QDo you see any impact on the current orders by Air India due to the disinvestment in the Airline?
No, the disinvestment or privatisation of Air India is a bold step by the government. We always support any activity that will make Air India stronger, healthier and more growth oriented. With somebody coming in and the government supporting the new entrant, obviously they will be investing money in the market to grow further which will help the airline prosper more.
QWhich are major growth drivers in Indian aviation? LCCs are doing a great job in terms of increasing growth in India. SpiceJet, IndiGo, GoAir and some others are working hard to drive the growth. Airlines like Air India, Jet Airways and Vistara, which are full-service carriers, are also growing. I think India has reached the equilibrium where two out of five passengers are going to fly on a fullservice carrier while three out of five will fly on a Low Cost Carrier.
QHas there been any increased growth in any particular airlines? Every airline in the Indian market is showing positive growth which is a good sign for the market. Each airline will gain their growth based on a lot of factors but the key is when all those airlines and maybe some new entrants in the future will together result in the forecast that we have given for the Indian market.
QHow will the MAX aircraft help open new markets for airlines? We have just delivered the first 737-8 MAX in May this year, which was purchased by SpiceJet and Jet Airways in India. The 737-8 MAX aircraft will be 14 per cent more fuel efficient than the one we have currently. This category aircraft will have a flying range of about 300-plus miles and will help carriers in India to open up new markets which they were unable to add because of inadequate range from the current aircraft. The 737 MAX is the fastest selling airplane in Boeing history because customers throughout the world, including India, want its combination of performance, flexibility and efficiency. Boeing also continues to offer the most complete family of wide body airplanes, as evidenced by our more than 85 per cent in-service market share in India. While we develop this, we have made sure that the operating cost is low, the fuel burn is low and thereby the Indian carrier gets opportunity to make more profits.
QHow do you see UDAAN Scheme First, it will help India connect to more cities and more people living in those cities will have the option of flying to their destinations. Second, it is going to be something that will help India grow faster and our current forecast on India market will get even better. Finally, for airlines in India, when they start a new route under the UDAAN scheme with a 90-seater airplane over the next 4-5 years, it will become a route that a Boeing 737 can fly. When this happens, it will clearly be beneficial for the airlines and all stakeholders and the Government of India.
I think India has reached the equilibrium Low Cost Carrier. Dinesh A. Keskar Senior Vice President-Sales