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Predicating a robust growth for the Indian civil aviation sector, aerospace major Boeing today predicted India will require 1740 aircraft by 2034 entailing a cumulative investment of $ 240 billion.
Dinesh A Keskar, Senior Vice President, Sales, Asia Pacific and India, said that the Indian domestic passenger has crossed the 80 million mark last year up from 66.4 million (2014), registering a growth of over 20 per cent. All indicators point towards India becoming one of the biggest aviation markets in the world over the next two decades.
Addressing a conference at India Aviation 2016, the Boeing official said the 1,740 aircraft required include 1,460 single aisles constituting about 84 per cent, 260 wide bodies (15 per cent) and 20 regional jets (about 1 per cent). Their value works out to $160 billion, $ 80 billion and $ 1 billion respectively.
Referring to various factors that have played a role in the growth of the civil aviation business in the country, he said the cost of fuel, which accounts for about 49 per cent cost in January 2013 has come down to 23 per cent in February 2016. This has played a major role airliners performing better leading to a profitable growth. But the only worry is the potential of rupee depreciating against the dollar as domestic airlines in India earn in rupees, but they have to meet their purchase obligations in dollar terms.
He said Boeing has built a maintenance, repair and overhaul (MRO) facility at Nagpur and has handed it over to Air India. It has capability to handle two 777 size aircraft and six 737 aircraft. With this facility, it is possible to manage most of the components and overhaul of aircraft.
Keskar said the break even fare has come down by about 39 per cent over the last three years. This was mainly due to lower fuel prices and increase load factors are driving industry recovery.
The Boeing official said that they command a robust order book from various airliners and continue to be leaders across different segments they offer aircraft.
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