Boeing: South Asia needs 2,800+ aircraft

Boeing forecasts that India and South Asia’s markets likely require 2,835 aircraft over the next 20 years, adding that the demand for commercial aircraft will grow fourfold in the region in the next two decades. “90 plus percent of the growth will come from India with single-aisle aircraft accounting for 85 percent of the estimate,” said Ashwin Naidu, Boeing managing director of Commercial Marketing for India and South Asia, at a media briefing on Thursday morning. He added that the Indian and South Asian regions continue to be the world’s fastest-growing commercial aviation market due to strong economic and trade growth, rising household incomes, and investments in infrastructure and development. As the Current Market Outlook shows, people will have greater access to air travel, and the region’s airlines will require a modern, fuel-efficient fleet to meet increased demand over the next two decades. The reason for this optimism comes from various factors, including the fact that the Indian economy is a leading economy with a growing middle class, rising disposable income, and manufacturing jobs. The report also estimates that India and South Asia will lead with the highest economic growth in the world at 5.2 percent compared to 3.8 percent in China, North America at 1.7 percent, and the world at 2.6 percent. Further, aviation is said to lift India’s economy by providing $ 54 billion in GDP contribution and supporting 7.7 million jobs. Naidu added that the “runway for growth for India was long.” The document states that continued growth will be fueled by greater demand and a rise in the region’s air traffic, which will grow more than 7 percent annually through 2043. This growth will be driven by sustained economic growth, improved connectivity, and policies that support air travel liberalization. Among the headwinds that could be faced are volatility in jet fuel pricing, currency pressure, lower domestic fares compared to the global average, and the fact that while infrastructure is growing, its growth is slow compared to the market growth. The document states that domestic air traffic is expected to remain the largest and fastest-growing segment in India’s travel market. It adds that this projected traffic growth will be enabled by further expansion and network diversification of low-cost carriers as airlines offer more regional routes and destinations. Boeing estimates that single-aisle commercial jet deliveries will account for nearly nine of ten deliveries in the forecast period. At the same time, the region’s widebody fleet will quadruple as carriers leverage airplanes to develop further long-haul networks, mainly from India to North America, where capacity has doubled in the past decade. It also forecasts that India and South Asia’s cargo freighter fleet, including new and converted models, will grow five-fold as the region expands its role in global supply chains, advanced manufacturing, and e-commerce. The report says that demand for pilots, cabin crew, and technicians will quadruple to 129,000, along with commercial airplane fleet expansion, representing the fastest growth rate of any region globally. Meanwhile, Boeing has also opened a Spare Centre on the outskirts of Delhi to serve its customers in India and the region. The Centre is not far from the new airport, Noida International Airport, which is coming up on the outskirts of Delhi.

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