Boeing sees improving Indian commercial aviation market

Forecast of 1,450 new airplane deliveries in next 20 years. New technology, fuel-efficient Boeing airplanes to help airlines return to profitability
Thursday, February 7, 2013

Bangalore: Boeing [NYSE: BA] sees signs of an improving commercial aviation market place in India, according to Dinesh Keskar, senior vice president of Asia Pacific and India Sales for Boeing Commercial Airplanes.

Keskar told reporters today at Aero India 2013 that while traffic is dropping due to reduced capacity, yields are improving and fuel prices are stabilizing in the market.

“These are all positive signs for the airlines in India,” said Keskar. “There is now a balance between supply and demand helping airlines get reasonable yields to make a profit.”

Boeing continues to be the choice supplier of long-haul, twin-aisle airplanes, with the 777 and 787 Dreamliner playing key roles in the fleets of major airlines in India.

Over the next 20 years, the Boeing Current Market Outlook projects that the airlines in India will need 1,450 new airplanes worth $175 billion.

The 20-year forecast of airplane deliveries by the airplane type is as follows:

India New Airplane Deliveries: 2012-2031

Airplane Type Deliveries Value (US$)
Single-aisle 1,201 $114B
Twin-aisle 234 $61B
Regional jets 15 $0.5B

Single-aisle airplanes such as the Next-Generation 737 and new 737 MAX continue to be in high demand with airlines in India, making up the bulk of new deliveries in the next 20 year period.

“Because fuel prices are higher in India, our newest products such as the 737 MAX will help airlines in India save fuel and lower their costs,” said Keskar. “In addition the capabilities of the 737 MAX will allow airlines to fly passengers farther and in more comfort with the Boeing Sky Interior.”