India will be a big market for Passengers jets in coming years.
Boeing values Indian aircraft market at $150 bn in 20 years
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.
