Indian carriers will need over 1290 aircraft, which would cost them about $ 190 billion, in the next two decade to satisfy its surging demand, French aircraft manufacturing company Airbus said in a statement on Thursday.
“Of the requirement for 1,290 new aircraft, some 73 per cent will be for growth and 27 per cent for replacement,” Airbus said.
“By 2032, Airbus forecasts that 36 per cent of India’s fleet will be wide-bodies, more than doubling today’s level. This is a result of increased capacity of international as well domestic routes with larger aircraft like the A330 and A350s,” it added.
At present, 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 4.7 per cent.
“By 2032, the number of Indian cities with more than a million passengers every month will have grown to 13 from today’s two. This exponential growth will continue to drive the need for larger aircraft like the A380 to operate in the country.” said Kiran Rao, Airbus EVP Strategy and Marketing.
“As the people of India fly more and the number of first time flyers increases, demand for the latest generations of aircraft will also increase making India on of the largest and most dynamic markets in the world,” he added.
Centre for Asia Pacific Aviation or Capa in its Outlook for 2014-15 said that Indian airlines will order as many as 400 aircraft during the year.
Currently, full service carriers like Air India, Jet Airways, and no frills like IndiGo, SpiceJet, GoAir, JetKonnect along with new entrants Air Costa together have close to 400 aircraft in their fleet while 350 more aircraft have been ordered.
By the end of FY2015 this is likely to have swelled to over 700 aircraft, the CAPA report added.
Vijaywada-based Air Costa had recently ordered 50 Embraer jets valued at close to $ 3 million at the recently concluded Singapore Air show.
India has the potential to become the third largest aviation market by 2020 and the largest by 2030, said a seperate report titled 'Indian Aviation 2014' by FICCI-KPMG, which was released on Thursday at the Hyderabad aeroshow.
“There is large untapped potential for growth due to the fact that access to aviation is still a dream for nearly 99.5 per cent of its population,” it said adding, “The industry has