An insight into the swiftly growing sector in the country.
India’s aviation industry requires 675 new commercial jet airplanes worth $65 Billion in the next two decades by then COVID will be history and the slack will have long been pulled in.
41% of the new deliveries will be intermediate-size twin-aisle airplanes, a significantly higher proportion than is expected in other regions. More than half, or 351 airplanes delivered, will be single-aisle and small regional jets.
The need for new airplanes is required to support a 18.7% annual increase in air travel serving India, the percentages could change and rise as high as 20.8 % per year.
The highest growth market is projected to be to and from the Indian subcontinent area at 5%, followed by intra-Middle East travel at 4.3%. The most heavily travelled routes, in total passengers, will continue to be to and from European markets.
India is expected to continue and experience economic growth at higher than the world average during the next 20 years. In addition, the 18.2% air travel growth projection provides a strong foundation for expansion by the region’s airlines.
The main thrust for a build up of the regional network in India should come from two directions. The first, in realising that pride and prestige routes are no longer viable and that large aircraft with 35% load factors are not the answer to servicing secondary airports. So far the region has been slow to accept the role of the below 80-seater aircraft.
For India this would be the best option for internal short hauls and feeder to hubs.