Airbus, the European aircraft manufacturer, has predicted India will require 1,750 new passenger and cargo aircraft over the next 20 years to meet the exponential growth in both passenger and freight traffic.
For the demand growth over the next 20 years, Airbus has said India will need 1,320 new single aisle aircraft and 430 wide-body aircraft with an estimated book value of US$255 billion.
Being extremely upbeat on India, the European aerospace major said that while much of the air traffic growth is expected to be driven by the fast expanding economy, rising wealth and urbanisation, regional connectivity programmes are also set to enhance demand for air travel.
By 2036, Indians will take four times as many flights as today. As a result, traffic serving the Indian market is forecast to grow 8.1 per cent per year over the next 20 years, almost twice as fast as the world average of 4.4 per cent. The domestic Indian traffic is expected to grow five-and-half times in 20 years (2017-2036), reaching the same level as US domestic traffic, making it one of the world’s fastest growing markets, the forecast said.
“Make in India is at the heart of our strategy. Airbus has the largest footprint in India of any International aircraft manufacturer, nationwide across all aircraft programmes. Our sourcing volume has grown 16 times over the past 10 years and it is currently at more than $550 million annually,” said Srinivasan Dwarakanath, president, Airbus Commercial Aircraft in India.
Incidentally, the sourcing has increased to $1.5 billion in the last three years, he added. India is set to become the world’s third largest aviation market by 2019-20 and Airbus is well positioned to partner it in its growth, with backlog orders of over 530 aircraft to date. The Airbus product line comprises the best-selling A320 Family in the single aisle market, the popular A330 and A330neo, the A350 XWB in the mid-size wide-body category and the flagship A380 in the very large aircraft segment.