Boeing expects to sell India 900 aircraft over next 20 years

1 August, 2007:

Boeing expects airlines in India to buy over 900 new aircraft worth over $86 billion in the next 20 years.

This is in the backdrop of India, Asia’s third-largest economy, witnessing strong passenger growth. India’s domestic aviation market is predicted to grow by around 20% a year over the next five years.

India, which had just four airlines three years ago, has currently over 10 airlines. This demonstrates that Indian airline operators, not foreign carriers, are increasingly connecting India to the world by expanding their regional and global presence, according to Dinesh Keskar, Boeing’s senior vice president for commercial airplanes.

The company estimates that the air travel market in India will grow at an average 12% a year over the next 20 years, compared to the worldwide average of 4.7%.

A statement from Boeing said the company has projected India’s need for 911 new commercial airplanes worth over $86 billion over the next 20 years.

Boeing already has orders for over 140 aircraft worth $20 billion from various Indian airlines, including Jet Airways, Air-India, and SpiceJet.

The state-run Air-India has received a long-range Boeing 777-200, the first one of a 68-aircraft order, which will fly non-stop between Mumbai and New York.

Air-India is likely to buy another 60 new planes by 2011 in order to expand its operations and meet growing demand.

Jet Airways, India’s leading domestic airline, has decided to buy 3 additional Boeing 777-300 aircraft, supplementing an earlier order for 30 new planes.

Boeing delivered 18 aircraft to Indian carriers between January and July 2007, worth over $2.3 billion.

Airbus, Boeing’s rival, expects airlines in India to place orders for 1,100 passenger and freighter aircraft valued at about $105 billion over the next 20 years.

Besides passenger planes, Boeing is among several global contenders to sell India 126 advanced, multi-role fighter jets in a deal worth over $8 billion.

Meanwhile, Boeing has said it will begin work in 2007 itself on its $100-million maintenance, repair, and overhaul (MRO) facility in India.

Boeing, Air-India and a third partner, yet to be selected, would run the MRO unit.

The MRO, which will be capable of carrying heavy checks and repairs of aircraft, is a part of the offset provisions in Boeing’s deal to supply 68 planes to Air-India.

According to the aircraft maker, the MRO would bring down maintenance and repair costs of Indian carriers as it would serve not only Air-India but also other carriers, which operate Boeing planes in India.