While the Indian aviation industry might seem in tatters with almost all the airlines running into losses, two aircraft manufacturing giants of the world – Airbus and Boeing are bullish on the industry’s prospects in India as they see the expanding middle class driving the demand for better air connectivity.
“By 2032, the number of Indian cities with over a million passengers every month will have grown to 13 from two currently. This exponential growth will continue to drive the need for larger aircraft like the A380 to operate in the country.” Airbus executive vice president (strategy and marketing) Kiran Rao said.
“As the number of first time flyers increases, demand for the latest generation of aircraft will also increase, making India one of the largest and most dynamic markets in the world,” Rao added.
According to the company, India is one of the fastest growing markets in the world with a predicted annual increase in aviation traffic of above 8% over 10 years (2012 – 2021).
According to Airbus’ latest market forecast, Indian carriers will require 1,290 new passenger aircraft valued at $190 billion by 2032 to satisfy the surging annual demand. “Indian annual passenger traffic growth rates of 8.6 per cent are well above the regional Asia-Pacific average growth rate of 6.1 per cent and the world average of 4.7 per cent,” the company said
Similarly, Boeing too is betting big on the Indian market as the company now expects the country’s commercial aviation fleet to grow more than five times over the next 20 years. According to Boeing senior vice president (sales) for Asia Pacific Dinesh Keskar, in the next 20 years, India would require around 1,600 aircraft valued at $205 billion. Interestingly, Boeing has revised its estimates as last year it had predicted that India would need 1,450 new airplanes worth $175 billion.