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Boeing claimed on Thursday that the country’s aviation traffic will expand by an average of 7% per year through 2040, despite hurdles such as high fuel prices, currency devaluation, and low fares. The aircraft manufacturer’s Indian president Salil Gupte stated that although India’s aviation traffic will expand 6.9 per cent through 2040, the south Asian market will rise at an average annual pace of 5.5 per cent. He noted that the Chinese, African, and Latin American markets will increase at an annual rate of 5.4%, 5.4%, and 4.8% through 2040.
According to Gupte, India has the lowest fares globally for close distances. They also stated that 70% of the airline’s operational expenditures are charged in foreign currency. According to Gupte, almost 23 million people in India travel by train daily, and if just 1% of them switch to aviation, air traffic will triple. He says India’s aviation freight business has “huge untapped potential.”
Key Takeaways
- Boeing claimed on Thursday that the country’s aviation traffic will expand by an average of 7% per year through 2040, despite hurdles such as high fuel prices, currency devaluation, and low fares
- Additionally, the business predicted that the number of tickets given by Indian airlines would significantly increase. Boeing, which controls almost 90% of the worldwide cargo industry, anticipates having a significant impact on the cargo business in India
- Strong recovery is gathering traction in Indian aviation, which is among the fastest-growing sectors.
- The south Asian market will rise at an average annual pace of 5.5 per cent. He noted that the Chinese, African, and Latin American markets will increase at an annual rate of 5.4%, 5.4%, and 4.8% through 2040.
- According to Gupte, India has the lowest fares globally for close distances.
- At the moment, SpiceJet & Air India Express are two scheduled Indian airlines that use Boeing freighters.
- India’s aviation sector will expand the quickest, according to Boeing.
Boeing's Expansion
At the moment, SpiceJet & Air India Express are two scheduled Indian airlines that use Boeing freighters. Salil Gupte, president of Boeing India, said the company is always considering increasing its in-country sourcing of raw materials. One area of concentration will be raw materials. Boeing has spoken with several ministries. We have been engaged to try to boost India’s raw material supply, which will be necessary for indigenisation, both in the manufacture of defence and civil aircraft, the official added. Boeing had announced and executed contracts with many Indian businesses totalling more than USD 500 million for production alone.
Top Growing Market in India
With an annual growth rate of 6.9%, Indian airlines will have the largest rise in air traffic until 2040. The industry in South East Asia is anticipated to develop at a pace of 5.5%, followed by China 5.4%, Africa 5.4%, and Latin America (4.8%), per a presentation by Boeing.
India’s aviation sector will expand the quickest, according to Boeing. Exclusive Boeing
Boeing highlighted some Indian airlines’ risks, such as high fuel costs and cheap ticket yields. Despite having some of the lowest prices on the planet for flights of comparable length, the business asserts that Indian airlines’ fuel expenses are 90 per cent greater than those of its foreign rivals.
Boeing intends to increase its current investments in India
Currently, Boeing freighters are used by SpiceJet & Air India Express. Salil Gupte, president of Boeing India, predicted the prospect of greater raw material deliveries from India “One area of emphasis would be on raw materials. It would be crucial for indigenisation in the manufacture of both defence & civil aerospace that we have spoken to many ministries and worked to increase raw material supply from India.”
Every year, Boeing purchases from India for about $1 billion. According to Gupte, over the past 18 months, Boeing has announced and inked contracts totalling more than $500 million in production with several Indian businesses.
According to Gupte, India has the cheapest global average fares for comparable distances. Additionally, they claimed that 70% of the airline’s operating expenses are paid in foreign currencies. According to Gupte, India has roughly 23 million daily rail passengers, and if just 1% of them switched to flying, air traffic would more than treble.
About The Indian Market
“India has every component of our supply chain, including engineering, software, and defence. From the most basic constructions to the most intricate aerostructures, composite materials—like those floor beams of 787—are used everywhere. Everything that makes up our work is here, he said. According to Boeing’s presentation, some of India’s biggest problems are fuel pricing, the fact that an airline must pay 70% of its operational costs in foreign currency, and the lowest mean prices for comparable distances and demand. According to the aircraft manufacturer, the 737-10’s 9% reduced seat prices will contribute to a robust aviation industry with long-term cheap fares. As of August 16, 137 Boeing aircraft were flying over India.
They comprise 29 Boeing 787s, 16 Boeing 737 MAXs, and 68 Boeing 737 NGS. Additional aircraft were 6 Boeing 757s and 18 Boeing 777s. Vistara, Air India Express, SpiceJet, Air India, and Aksa Air are the five scheduled airlines with Boeing aircraft in their fleet.
