India will need 1,150 planes worth $130 bn: Boeing

NEW DELHI: Major aircraft manufacturer Boeing revised upwards its market outlook for India saying the country would require 1,150 planes worth $130 bn over the next two decades.

The company, which had earlier estimated that 1,000 planes worth about $100 bn would be required in the country in the same period, revised its outlook on the basis of the estimated growth rates of GDP and passenger traffic.

"Most of these aircraft will be twin-aisle or the Boeing 787-8 type which will be able to fly point-to-point to destinations in Europe and the US to Indian cities," Boeing India President Dinesh Keskar told reporters here.

In 2000, there were only two Indian carriers -- Air India and British Airways -- serving the India-London route with 24 weekly frequencies. This year, there are six airlines serving the sector with 104 frequencies.

Noting that the average seats per flight on these routes had declined from 412 in 2000 to 297 in 2010, he said this showed that the large aircraft like B-747s have been replaced by twin-aisle widebody aircraft like B-777s or Airbus A-330s.

Keskar said that there would no delay in the delivery of the first Boeing 787-8 or Dreamliner to Air India.

"The first Dreamliner will be delivered to Air India in the late first quarter or early second quarter of 2011. The delivery to Air India remains on track. This aircraft is now in the final assembly line," he said, adding that the 787 flight test programme was "progressing well".

Responding to questions, Keskar said India would become one of the "significant leasing markets" with a large chunk of planes being taken by Indian carriers on lease.

Roughly two-thirds of the Indian aviation market was now served by no-frill carriers like IndiGo, SpiceJet, JetLite, JetKonnect and Kingfisher Red. "This trend will continue over the next two decades".

The Boeing India chief said air travel in India, which was tied closely to the country's economic growth, would "largely recover by 2011".

Despite going through the most severe recession in the history of the aviation industry, the Indian airlines have been "one of the fastest to recover".

"We believe there will be a record 50 mn passengers this year if the trend continues", Keskar said, adding that Indian airlines carried a record 44 mn passengers in 2009.