BOE­ING FORE­CASTS $770 BIL­LION CIVIL AVI­A­TION MAR­KET IN IN­DIA OVER 20 YEARS

In­dian de­mand for 2,380 new jet air­craft worth $330 Bil­lion pro­jected, but no plans to shift as­sem­bly lines out of US

SP's Airbuz - - Table of Contents - BY VISHAL THA­PAR

OVER THE PAST DECADE, DO­MES­TIC AIR TRAF­FIC IN THE IN­DIAN SKIES HAS TRIPLED, WHILE IN­TER­NA­TIONAL AIR TRAF­FIC HAS MORE THAN DOU­BLED

IN­DIA WILL BE A $770 bil­lion (`54,67,365 crore) mar­ket for civil avi­a­tion over the next 20 years, and drive a de­mand for 2,380 new jet air­craft, ac­cord­ing to Boe­ing’s Com­mer­cial Mar­ket Out­look (CMO) which was re­leased in New Delhi on Novem­ber 6. Pre­sent­ing a bullish fore­cast based on the cur­rent trend of In­dia/South Asia be­ing the fastest grow­ing avi­a­tion mar­ket, Boe­ing’s Dar­ren Hulst said the 2,380 new com­mer­cial air­craft, be­sides re­plac­ing the ex­ist­ing fleet, would quadru­ple In­dia’s civil avi­a­tion fleet by the year 2038.

The pro­jected de­mand for the new air­craft is val­ued at $330 bil­lion (`23,43,319.9 crore) while another $440 bil­lion (`31,24,679.8 crore) is ex­pected to be spent on op­er­at­ing and main­tain­ing this fleet.

Be­yond In­dia, the global com­mer­cial jet fleet is ex­pected to dou­ble in size by 2038 as air­lines will need 44,000 new air­planes val­ued at $6.8 tril­lion, and de­mand more than $9 tril­lion in avi­a­tion ser­vices, ac­cord­ing to the Boe­ing fore­cast. All air­craft man­u­fac­tur­ers glob­ally pro­duced 1,700 air­craft in 2018. The mar­ket out­look for 44,000 new air­planes over the next 20 years sug­gests an av­er­age de­mand for 2,200 an­nu­ally, which will drive growth for the air­craft man­u­fac­tur­ing In­dus­try, Hulst, Boe­ing’s Se­nior Man­ag­ing Di­rec­tor Mar­ket Anal­y­sis & Sales Sup­port (Com­mer­cial Air­planes), said.

Since 2009, op­er­a­tions by low-cost car­ri­ers (LCC) have in­creased from 392 flights to 28 air­ports up to 2,380 flights to 54 air­ports. This re­flects a six-fold in­crease in the num­ber of flights by LCCs.

In the wide body, long-haul seg­ment, there are now over 300 in­ter­na­tional city pairs from In­dia, of which 30 new pairs have been added over the last one year.

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