Aircraft producers, Boeing and Airbus anticipate that India will order 1,740 planes bringing in business worth around $224 billion, as they identify India as being on the world’s most rapidly expanding aviation sectors that will assist with off-setting the lack of sales elsewhere.
On Thursday, Boeing stated that the dropping oil prices along with factors such as, India’s growth in its upper-class who are able to afford travel by air and a revamp of the airport framework would all stimulate the need for more purchases.
In an Indian Aviation air show held this week in Hyderabad, a city in South India, Boeing’s senior vice president, Dinesh Keskar stated that Boeing anticipates airlines to make a purchase of 1,740 jets, valued at a total of $240 billion by the year 2034.
Additionally, Airbus, also stated at the event that it projects India will need to order more than 1,600 passenger and freighter aircraft, with 75 per cent of that demand being for narrow body jets, generating an estimated $224 billion in business for them.
Boeing’s Keskar said:
“India’s growth can help offset the slowdown in other parts of the world.”
After identifying a possible global economic downturn of aircraft sales, a dilemma highlighted in Singapore and Dubai aviation shows, Aircraft companies are very keen to offer sales assistance to India in order to manage the sales slump.
Alternatively, aircraft producers, who met last month in Singapore for a meeting, disregarded industry expert’s opinion and stated that an unforeseen augmentation in the aviation industry had made it to its eighth year, reinforced by the oil price drop.
Low-cost Indian carrier, SpiceJet Ltd, is in negotiations with Airbus and Boeing to purchase 100 planes at a listed price, totalling a net value of $11 billion.
Whilst Boeing is pursuing the deal to retain its prominence in Indian low-cost carrier arena, a triumph for Airbus would reserve its spot as India’s prioritized provider for narrowbody planes.
Boeing’s Kesar said:
“Airbus is being very aggressive and I don’t blame them. We have a relationship with SpiceJet that dates back to 2002. We have worked with them in good and bad times.”
Airbus bagged a purchase order in August supplying 250 A320neo aircraft to IndiGo, an airline promoted by InterGlobe Aviation Ltd., in this context many other airline companies have started plans to increase their fleets and to boost business in this rapidly growing sector.
A report delivered on Thursday, wherein consultants KPMG and the Federation of Indian Chambers of Commerce and Industry stated that India is on track to be recognized as the third largest in the world for its fleet in the aviation market by 2020, six years in advance of the outlook expected by International Air Transport Association in 2015.
It is also apparent that the statistics of air travel passengers in India has increased by greater than 20 per cent, as compared to last year. India’s SpiceJet, Jet Airways (India) Ltd., IndiGo, and GoAir, substantially big airlines in India, have been upgraded to make more profits as the market continues to grow.
Joost Van Der Heijden, Airbus’ Head of Marketing in Asia said to press in Hyderabad:
“We are confident about the India forecast because of economic growth, middle class growth and airlines are doing well. There is a relatively low number of aircraft compared to other emerging markets.”