New Delhi (The Statesman/ANN) - Raising its sales forecast for passenger planes in India, the US-based aircraft maker, Boeing, said Indian domestic carriers will need 1,320 new airplanes over the next 20 years valued at $150 billion.
"Robust growth with new economic prosperity amongst a massive Indian population, discretionary incomes, business progress and access to airports will increase airplane demand," Boeing India president Dinesh Keskar said while presenting the company's outlook for country's commercial airplane market through 2030.
The company predicted demand for 1,150 planes in a 20-year forecast last year. The Indian air passenger traffic may expand 8.1 per cent a year over "the long term" because of the nation's economic growth, Boeing said.
Keskar said carriers in India are making profits in line with economic growth, which is expected to maintain its upward trajectory in the long-term. "As a result, both the air travel and air cargo markets will grow," he said. 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, Keskar added.
Boeing predicts 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. The demand for new aircraft is driven by growth in developing and emerging cities, demand from low-cost carriers, and the need to replace an aging fleet, it said. High inflation and volatile fuel prices will however, play a pivotal role in determining the future trend of the industry, Boeing said. The company said passenger traffic in India is expected to grow 8.1 per cent each year over the long-term while globally it is expected to grow at 5.1 per cent.
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