India Soon to be the Biggest Aircraft Buyer of South-Asia. India’s domestic passenger traffic has been rapidly growing over the past few years, thanks to various initiatives by the Government of India, like UDAN. The liberalization of aviation norms and capping of maximum air fare for smaller cities have boosted the domestic aviation. Many smaller airports are being revamped and upgraded to match international standards. Facilities for better handling of air cargo is also being developed at many Tier II and Tier III airports. Like west, the Indian aviation industry is competing with Indian Railways on price points, thereby leading to huge demand generation for new aircrafts.
India Soon to be the Biggest Aircraft Buyer of South-Asia. US based Boeing is expecting Indian aircraft carriers to order up to 2100 aircrafts over the next 20 years. This is the highest forecast for any country so far. The total purchase is expected to cross US$ 290 Billion. It is worth noting that the total growth average of India not only leads the South-Asian Market growth of 8% which is also much higher the world average of 4.7%. India will be accounting for 5% of Boeing’s total sale in next two decades. The company is expecting its next generation single-aisle planes 737 and 737 Max to dominate the sale order from India, with the total purchase numbers touching 1800 aircrafts.
France based Airbus Group SE is also getting a fair share of pie from the low-cost carriers which demand smaller planes and account for 60% of the country’s air traffic. But it is worth noting that the dominance of the Indian aviation segment by Airbus is slowly being challenged by its American rival. Earlier this year Boeing stole a big order worth US$ 22 Billion from budget carrier Spice Jet Ltd. This was one of the biggest Indian order for the company.