Airlines in India will need 2,100 airplanes valued at 290 billion US dollars over the next 20 years, said Dr Dinesh Keskar, Senior Vice-President, Asia Pacific and India Sales , Boeing commercial Airplanes, in Hyderabad on Thursday.
Boeing continues to develop new fuel efficient airplanes to address the need of our customers such as those In India,” he said. Forecasting India’s Aviation Market for next 20 years, Dr Dinesh while presenting a power point demo at the ongoing Wings India 2018 here, said the traffic growth in India is more than 20 per cent, exceeding the global average of 7.3 per cent while the domestic traffic exceeds 116.7 million passengers in last year.
Indian economy continues to be strong and will be the third largest by 2037, he claimed and said India domestic passenger traffic is at highest levels over past five years. Recent rupee appreciation has helped airlines maintain their profitability
Fuel prices, the exchange rate and load factor continue to drive airline operating costs and profitability, he said the fuel price has risen 81 per cent since early 2016. Despite lower fares, increased load factors have allowed for continued profitability.
Unprecedented growth in the Indian Domestic Market , he said that 8 per cent increased by Air India in last July against correspondent period in previous year (2016) followed by Indigo ( 20 per cent), spiceJet (25 per cent) , Vistara (40 %), AirAsia India (46 per cent) while Jet airways by 9 per cent growth only.
Indian carriers pay 110 per cent more for fuel than the US carriers, Dr Dinesh said that out of 4,306 order from 92 countries for 737 MAX , 74 delivered to 17 customers as on January 19 this year .
The first delivery of Jet airways 737 MAX will take place in mid year 2018 and also SpiceJet 737 MAX (first delivery) too.