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India may need 2100 planes over 20 years, says Boeing

01 Août 2017

Chicago-based Boeing expects India-based airlines to order up to 2,100 new aircraft over the next two decades, at a total cost of $290 billion dollars.

"The increasing number of passengers combined with a strong exchange rate, low fuel prices and high load factors bodes well for India's aviation market, especially for the low-cost carriers".

In 2016, India revamped its rules that governed its aviation industry, through the liberalization of norms for its domestic carriers to make global flights and spreading out the air travel boom in the country to smaller cities through capping the air fares and by opening new airports.

The biggest maker of jets in the world said it was expecting passenger growth in Southern Asia to be 8%, dominated by the market in India, over the upcoming two decades, in comparison to the average for the world of 4.7%.

Boeing said it expected single-aisle planes, such as the next generation 737 and 737 Max, to account for the bulk of the new deliveries, with India likely to take 1,780 such aircraft.

The growing number of air passengers in combination with the low prices of fuel, strong exchange rate, and higher load factor are important pluses for the aviation market in India, especially for low-cost air carriers, said on Boeing executive.

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Keskar adds that Boeing maintains a dominance in the widebody segment, with a marketshare of 85%.

The US-based airplane maker dominates the wide-body aeroplane market in India, while competitor Airbus SE sells the bulk of small planes preferred by low-priced carriers (LCCs) such as InterGlobe Aviation Ltd's IndiGo.

Low-priced carriers dominate Indian skies and account for more than 60 percent of flights in the country.

Boeing plans to plug this gap in its portfolio with the 737 MAX 10 single-aisle jet which it launched at an air show in Paris in June, following runaway sales of Airbus' A321neo.

Boeing is expecting the demand worldwide for over 41,000 aircraft during the upcoming 20 years, which puts the share for just India at over 5%.

India may need 2100 planes over 20 years, says Boeing