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Boeing projects $ 72 billion market for 856 aircraft in India

New Delhi, Aug 28 (UNI)

The Seattle-based plane maker Boeing today detailed its India current market outlook, projecting a need for 856 new commercial jets worth over 72 billion dollars (about Rs 338,400 crore) over the next 20 years.
The strong forecast is supported by a robust economic growth, an increasing demand for point-to-point domestic and international air travel, and the growth of India-based cargo market.
‘‘Economic growth, liberalisation and airlines’ operational efficiencies are three fundamental drivers behind the increase in air travel in India,’’ said Dr Dinesh Keskar, senior vice-president for Boeing Commercial Airplanes’ sales division in south and southeast Asia.
Of the 856 aircraft required, about 676 planes worth 25.41 billion dollars (about Rs 119,427 crore) will be in single aisle category (like the B 737-800s). The rest in twin-aisle, regional jets or B 747 and larger category.
Dr Keskar said India’s progression from a regulated to liberalised market has dramatically increased the competition among airlines and is forcing them to operate at much higher levels of efficiency to remain profitable.  
Last year, Boeing won orders from Air India to supply 68 aircraft (18 737-800s, 27 787s and 23 777-300ERs / 200LRs), Jet Airways for 20 planes (10 737-800s and 10 777-300Ers), SpiceJet for 10 737-800s and Indian Air Force for three 737BBJs. In value terms, the orders total up to 15 billion dollars (about Rs 70,500 crore).
This year, SpiceJet has placed firm orders for five 737-900ERs and five 737-800s. Flyington Freighters, the country’s first international cargo airline to operate widebody aircraft, has placed orders for four 777Fs.
‘‘India is on the verge of a logistics boom with exports growing at 20 per cent,’’ said Dr Keskar. The total tonnage handled at all airports was 1.4 million in 2005-06, up 9.4 per cent in the year-on period.
Blue Dart has recently introduced two 757SF planes into service. Some operators are planning to convert passenger aircraft to dedicated freighters to add lift (that is Air India A310s).
In 2003, India had 121 aircraft and orders for two planes. This year, it has 224 aircraft with orders for 384 planes. Also, since 2002, the weekly frequencies have increased over 75 per cent.
But low fares and high fuel prices will now continue to put pressure on yields. ‘‘This trend needs to be arrested,’’ said Dr Keskar. ‘‘Otherwise, the whole industry can become sick.’’