India commercial aviation market valued at 1,320 new airplanes over next 20 years, By Boeing

Posted by John McHaleNEW DELHI, India, 8 July 2011. Officials at Boeing [NYSE: BA] are predicting the market for new passenger aircraft in India to be $150 billion market for 1,320 new airplanes over the next 20 years. They forecast that as the economy aims for double-digit growth, it will stimulate robust demand for new and replacement airplanes. "Robust growth with new economic prosperity amongst a massive Indian population, discretionary incomes, business progress and access to airports will increase airplane demand," says Dinesh Keskar, Boeing India president. "In 2011, the economy continues to do well. Indian air carriers are becoming profitable and we expect the GDP to maintain its upward trend in the long-term. As a result, both the air travel and air cargo markets will grow."Keskar notes that while airline revenue and yields were up, volatile fuel prices and high inflation will play a major role in the aviation industry health.Passenger traffic, which has reached 53.6 million domestic and 13.1 million international, is expected to grow at 8.1 percent annually over the long-term, Boeing officials say."The economic and air-traffic growth will in turn stimulate demand for a variety of aircraft types," Keskar says. "The need is great for new airplanes that can efficiently and profitably fly short and long-haul routes. This demand is driven by growth in developing and emerging cities, demand from low-cost carriers and the need to replace an aging fleet."According to Boeing single-aisle airplanes will see the biggest demand increase. The company's Next- Generation Boeing 737 falls in that category and to keep up with increased demand, Boeing officials announced that the company will incccrease production to 42 737s per month by the first half of 2014.Boeing airplanes currently dominate India’s long-haul international fleet, with 777s and 747s in service, soon to be joined by the 787 Dreamliner. Boeing officials forecast that India-based airlines will grow by responding to passenger preference for more flight choices, lower fares, and direct access to a wider range of destinations. Air carriers will focus on offering more flights using more efficient airplanes, instead of significantly larger airplanes.Globally, Boeing officials predict a $4 trillion market for new aircraft over the next 20 years with a significant increase in deliveries. The company sees a market for 33,500 new passenger airplanes and freighters between 2011 and 2030. Passenger traffic is expected to grow at 5.1 percent annual rate over the long-term and the world fleet is expected to double by 2030.