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Airbus today predicted that India will require about 1,600 new aircraft by 2034, as it is on way to becoming the third largest aviation market.
According to Airbus’ latest global Market Forecast released at Hyderabad at the India Aviation 2016, in the 20 years from 2015 to 2034, India will require over 1,600 new passenger and freighter aircraft to help meet growth in demand. Valued at $224 billion, these will include 1,230 single-aisle aircraft and 380 wide-body passenger and freighter aircraft.
By 2035, the report expects the number of Indian cities with over one million monthly air passengers will more than triple.
Addressing a conference, Joost van der Heijden, Vice-President, Marketing Asia, and Srinivas Dwarakanath, President, Airbus Division in India, said India’s preference for Airbus aircraft was further consolidated in 2015 with 250 new firm orders, lifting the market share of orders and the in-service fleet to over 70 per cent.
Today, some 56 per cent of India’s in-service fleet are Airbus aircraft operated by most leading Indian carriers. This includes India’s first A320neo, the first to be delivered in the Asia region, Dwarakanath said.
Air traffic growth is driven by urbanisation, the growth in wealth, as seen by the growing middle classes, tourism and trade. India’s population is set to surpass China’s by 2025, and according to Oxford Economics, the number of Indian middle classes will top 600 million people, more than double that of the US. By 2034, Indian passengers on average will each make four times as many flights as they do today.
As a result, traffic serving the Indian market is set to grow at 8.4 per cent per year over the next 20 years, well above the world average of 4.6 per cent. Domestic Indian traffic will grow more quickly at 9.3 per cent – making India the world’s leading emerging aviation market.
Airbus expects to further consolidate its business in India as it adds to its customer base and strengthens its sourcing.
Dwarakanath said their cumulative procurement from India is set to reach $2 billion by 2020.
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