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Boeing Values Indian Market At USD150bn

by Mary Swire, Tax-News.com, Hong Kong

14 July 2011


Boeing forecasts a USD150bn market for 1,320 new passenger airplanes in India over the next 20 years with the economy poised for double-digit growth.

The forecast for the Indian aviation market to 2030 was delivered by Boeing India President Dinesh Keskar, who said: "Robust growth with new economic prosperity amongst a massive Indian population, discretionary incomes, business progress and access to airports will increase airplane demand."

"In 2011, the economy continues to do well. Indian air carriers are becoming profitable and we expect the GDP to maintain its upward trend in the long-term. As a result, both the air travel and air cargo markets will grow,” he added.

Keskar also said that airline revenue and yields were up, but high inflation and volatile fuel prices will play a pivotal role in the health of the industry.

Passenger traffic, which has reached 53.6 million for domestic travel and 13.1 million on international routes, is expected to grow at 8.1% annually over the long-term, according to Boeing.

“The economic and air-traffic growth will in turn stimulate demand for a variety of aircraft types,” Keskar said. “The need is great for new airplanes that can efficiently and profitably fly short- and long-haul routes. This demand is driven by growth in developing and emerging cities, demand from low-cost carriers and the need to replace an aging fleet.”

Boeing predicts that the most significant demand will be for single-aisle airplanes and the company has announced that it will boost production to a record 42 737s per month by the first half of 2014.

Boeing airplanes currently dominate India’s long-haul international fleet, with 777s and 747s in service, soon to be joined by the 787 Dreamliner. “The super-efficient 787 will offer significant economic improvement for airlines, increased comfort for passengers and better environmental performance,” Keskar said.

Some carriers, like Air India are looking for replacement airplanes as they retire aging and less-efficient jets. But Boeing expects that air carriers will focus on offering more flights using more efficient airplanes, instead of significantly larger airplanes.

Globally, Boeing forecasts a USD4 trillion market for new aircraft over the next 20 years with a significant increase in deliveries. The company sees a market for 33,500 new passenger airplanes and freighters between 2011 and 2030. Passenger traffic is expected to grow 5.1% annually over the long-term and the world fleet is expected to double by 2030.

TAGS: aviation

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