India will need 1,320 new passenger airplanes over the next 20 years, as its economy pushes toward double-digit growth, Boeing said in its latest outlook for India's commercial-airplane market.
As economic prosperity spreads to a wider swath of the Indian population, demand for new and replacement airplanes will surge to $150 billion through 2030, according to the Boeing forecast.
"Indian air carriers are becoming profitable and we expect the GDP to maintain its upward trend in the long-term," Boeing India President Dinesh Keskar said last week. "As a result, both the air-travel and air-cargo markets will grow."
|Boeing in June said it will increase production of its next-generation 737s, shown here in final assembly in Renton, Wash. Single-aisle airplanes will be in high demand in India, according to Boeing's latest forecast. |
Passenger traffic is expected to grow by 8.1% annually over the long-term, according to Boeing's forecast.
"The economic and air-traffic growth will in turn stimulate demand for a variety of aircraft types," Keskar said.
New airplanes "that can efficiently and profitably fly short and long-haul routes" will be in high demand, Keskar added.
"This demand is driven by growth in developing and emerging cities, demand from low-cost carriers and the need to replace an aging fleet, Keskar explained.
More Flights, Lower Fares
Single-aisle airplanes will be the most sought-after airplanes, according to the forecast.
To keep up with demand, Boeing recently said it will boost production to a record 42 single-aisle 737s per month by the first half of 2014.
India's airlines have been growing rapidly by taking advantage of geography, demographics, airplane technology and well-coordinated growth and investment plans, according to Boeing.
Some carriers, like Air India, also are looking for replacement airplanes as they retire aging and less-efficient jets.
Boeing predicts that India-based airlines also will grow by responding to passenger preference for more flight choices, lower fares and direct access to a wider range of destinations.
Air carriers will focus on offering more flights using more efficient airplanes, instead of significantly larger airplanes.
Globally, Boeing forecasts a $4 trillion market for new aircraft over the next 20 years with a significant increase in deliveries.
The company sees a market for 33,500 new passenger airplanes and freighters between 2011 and 2030.
Passenger traffic is expected to grow at 5.1% annual rate over the long-term and the world fleet is expected to double by 2030, according to Boeing's global forecast.