Boeing values Indian aircraft market at $150 bn in 20 years

[LETHALFORCE]

Boeing values Indian aircraft market at $150 bn in 20 years - The Times of India

MUMBAI: With India's healthy GDP growth expected to stimulate a strong demand, Boeing on Thursday forecast a $150-billion market for 1,320 new passenger airplanes in the country over the next 20 years.

"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," Boeing India president Dinesh Keskar said.

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

"The economic and air traffic growth will in turn stimulate demand for a variety of aircraft. The need is 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," he said.

The Asia's third largest economy will turn into a $150 billion market for passenger airplanes over the next 20 years, he maintained.

The biggest demand will be for single-aisle airplanes and the next generation Boeing 737 would fall in that category, Keskar stated.

"Boeing currently dominates India's long-haul international fleet, with 777s and 747s in service, and the 787 Dreamliner joining soon.

The Boeing 787 will offer significant economic improvement for airlines, increased comfort for passengers and better environmental performance," Keskar stated.

India's airlines have been growing rapidly by taking advantage of geography, demographics, technology and well-coordinated growth and investment plans.

Some carriers like state-run Air India are also looking for replacement of airplanes as they retire aging and less-efficient jets.

The US aircraft manufacturer has predicted that India-based airlines will also grow by responding to passenger preference for more flight choices, lower fares and direct access to a wider range of destinations.

 

[Tshering22]

I'd say Boeing has a good chance in Indian civil and military market provided Boeing does something about their this-signing-that-signing restrictions.

 

[plugwater]

How about including offset policy in civilian purchase as well ? http://www.ask.com/web?q=How+do+you+get+pink+eye%3F&gc=1&qsrc=3066&o=0&l=dir

 

[sky]

Why does GOI not ask for tot and build these planes india which will not only create job's but boost the skill's base, while also maximising value for money and taking advantage of lower wage cost's in india.

I think with so amount of money the IAF as well navy is buying boeing ,this could be a the catalyst that bring's INDIA and USA together ....

 

[LETHALFORCE]

UPDATE 1-Airbus has orders worth $35 bln from India-exec | Reuters

Airbus has orders worth $35 bln from India

Jul 8 (Reuters) - European plane maker Airbus has orders worth $35 billion from India, a senior company executive said on Friday, with recent record order wins in the fast-growing market accounting for more than half of the total orders.

Indian carriers are rapidly expanding their operations as an economy growing at nearly 9 percent spurs business travel and the middle class, long accustomed to traveling by rail, increasingly takes to the air.

Airbus has an order backlog of more than 400 planes to be delivered to Indian carriers over the next 15 years, Joost Van Der Heijden, Airbus' head of airline marketing for Africa, India, South East Asia and Japan, told reporters in Mumbai.

He said India is the seventh-largest market for Airbus but expected it to climb in coming years.

"India will move up with traffic growth higher than anywhere in the world," Heijden said.

"The Indian fleet will certainly more than double and could even triple in the coming years," he said on the sidelines of an industry conference organised by Euromoney.

Indian budget carriers Indigo and GoAir last month placed plane orders worth nearly $23 billion in total with Airbus.

Rival Boeing has existing orders of about $15 billion with airlines in India, the top official in its Indian unit said on Thursday.

Boeing expects India's commercial plane market to reach $150 billion over the next 20 years, as a burgeoning middle class is expected to drive demand in Asia's third-largest economy. (Reporting by Aniruddha Basu; Editing by Rosemary Arackaparambil and Tony Munroe)