INDIA: India to be US$150B aircraft market: Boeing

With India's surging GDP growth expected to continue, Boeing recently revised its demand forecast for the country upwards to a US$150 billion market for 1,320 new passenger aircraft in the country over the next 20 years.


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With India’s surging GDP growth expected to continue, Boeing recently revised its demand forecast for the country upwards to a US$150 billion market for 1,320 new passenger aircraft 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,” Boeing India president Dinesh Keskar said.

Indian air carriers are becoming profitable and we expect the GDP to maintain its upward trend in the longterm. As a result, both the air travel and air cargo markets will grow,” he added.

While Keskar noted that airline revenue and yields were up, he cautioned that inflationary pressure and volatile fuel prices will play a major role in the health of the aviation industry in the near term.

“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.