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Appetite for aircraft to rise

Airbus marketing head Joost Van der Heijden (right) and India CEO Srinivasan Dwarakanath in Hyderabad on Thursday. (AFP)

Hyderabad/New Delhi, March 13: Global aircraft majors Boeing and Airbus have projected a healthy rise in demand for planes from India in the coming two decades.

Boeing has forecast India’s commercial aviation fleet will grow more than five times in the next 20 years, with demand for 1,600 new airplanes valued at $205 billion.

European manufacturer Airbus said India needed 1,290 aircraft — 73 per cent of them additions — worth more than $190 billion in the next 20 years.

“Indian carriers will require a much upgraded number, between now and 2032, over the last forecast made in 2012 ,” Joost Van Der Heijden, Airbus marketing head (Asia), said.

Airbus puts Indian annual passenger traffic growth rate at 8.6 per cent, which is more than the Asia Pacific average of 6.1 per cent and world average of 4.7 per cent.

Globally, Boeing projects the market will swell to $4.8 trillion, with demand rising to 35,280 airplanes in the next 20 years. This rise will be driven by an increase in demand from emerging nations such as India and China.

After a deal with SpiceJet on Wednesday, Boeing is now in talks with Jet Airways and Air India to sell its 737 MAX jets, Dinesh Keskar, Boeing senior vice-president of sales, Asia Pacific and India, said.

Meanwhile, a study by consultancy major KPMG and industry body Ficci revealed the high growth in Indian aviation market, which would in the future be triggered by regional operations, was being restrained by over-taxation and lack of infrastructure in smaller cities.

KMPG said there was an urgent need to do away with the “five-year and 20-aircraft rule” for Indian airlines to fly abroad as it takes away a chunk of global market share from Indian carriers.

 
 
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