Indian Defence Review

• Over 60 million passengers to fly in 2012
• Positive economic growth strengthens aviation market
• Air india 787 Dream//nor ready for delivery

Boeing projects India’s commercial aviation fleet will grow more than 4.5 times in size over the next 20 years, according to the Boeing 2012 India Current Market Outlook released today. Over the next 20 years, Airlines in India will need 1,450 new airplanes worth $175 billion.

“India is projected to have the highest passenger traffic growth in the world,’ said Dinesh Keskar, senior vice president of Sales, Asia Pacific and India, Boeing Commercial Airplanes, as he shared the forecast today. “Over 60 million passengers wUl fly within India this year. Over the next twenty years, the forecast passenger growth is expected to be driven by an underlying economy with long-term growth projections of twice the world average and supported by the continued economic prosperity amongst a growing segment of the large Indian population, higher discretionary incomes, business progress and easier access to airports.”

The 20 year forecast of airplane deliveries by airplane types is as follows:

India New Airplane Deliveries: 2012-2031

The biggest demand for airlines in India continues to be for single-aisle airplanes such as the Next-Generation 737 and new 737 MAX. Boeing currently leads India’s

wide body long-haul international fleet with the 777s and 747s. The Boeing 787 Dreamliner will be joining the fleets of Air India and Jet Airways, furthering that leadership. Boeing continues to believe passengers will continue to prefer more flight choices, lower fares, and direct access to a wider range of destinations and the air carriers in India will continue to offer more flights using more efficient airplanes, rather than on using significantly larger airplanes.

“The Boeing 787 Dreamliner will enter and loin Air India’s fleet with a very attractive interior and a number of technological features that will significantly enhance the passenger flying experience. The Dreamliner will help airlines such as Air India augment and expand their network as opportunities present themselves,” said Keskar. “The 787 has the range and capability to allow Air India to deploy the Dreamliner on many routes including the Middle East, Europe, Asia, and Australia. And all this will be at significantly lower operating costs.”

As of today 19 Boeing 787 Dreamliners have entered service with four 4 carriers. More airlines will be taking deliveries in the forthcoming months. Since October 2011, the 787 has flown more than 6,000 flights and has carried over 1.5 million passengers worldwide. A recent passenger survey by a leading airline in Asia found that nine out of ten of their 787 passengers expressed very high degree of satisfaction and their overall flying experience met or exceeded expectations.

Keskar also said that airlines in India are improving their financial performance due to increased yields and improved capacity management, although slowing gross domestic product growth, fuel prices, and a weak rupee could affect profitability and growth in the near term.

“When you look at the market, despite some of the challenges, India will continue to have one of the strongest, most vibrant aviation markets in the world,” said Keskar.

Globally, Boeing projects a $4.5 trillion market for 34,000 airplanes over the next 20 years, driven by an increase in deliveries from India, China and other emerging markets. That forecast represents the traffic growing at 5.0 percent annual rate over the next 20 years and the world fleet is expected to double by 2031.