Boeing predicts India’s demand for planes will rise

NEW DELHI – India will likely need 911 new passenger jets over the next 20 years to meet the growing demand for air travel, Boeing Co. said Monday, announcing an upward revision to its earlier forecast.

India’s demand for new planes over the next 20 years could result in orders worth $86 billion at current list prices, making it one of the world’s largest markets for new jets, Boeing said in its latest market outlook for India.

India’s rapid economic expansion in recent years, coupled with policies to break the monopoly of state-run companies in the airline sector, has driven demand for air travel and new planes.

In 2003, India had a fleet of only 121 planes, which has since increased to 257 with 387 firm orders for new planes by Indian companies.

In the past two years, Boeing has won orders for 144 jets worth $21 billion, said Dinesh Keskar, senior vice president of sales.

The success of private airlines and the surge in air travel has encouraged companies like Boeing to repeatedly revise their forecasts, Keskar said.

Last year, Boeing said India will likely buy 856 jets worth $72 billion by 2025. On Monday, it revised the projection to 911 jets.

Single-aisle planes – such as Boeing’s 737 series or the Airbus A320, which can carry as many as 200 passengers – will account for nearly three-quarters of the new demand, according to Boeing’s forecasts.

Airlines will try to accommodate growth in domestic air travel by increasing flight frequencies and adding more point-to-point nonstop flights. A similar strategy on international and long-distance routes would make them rely more on twin-aisle planes, such as Boeing’s 777 and 787 Dreamliner series or the A340 and A350 from Airbus.

“I don’t see the need for large planes like the 747s or the Airbus A380 in this country,” Keskar said.

Only one Indian airline has so far ordered the A380, Kingfisher Airlines, which has placed an order for five jets.

No airlines have orders pending for Boeing’s 747.