|
| Boom in Aviation |
|
| |
| Aviation Industry in India is one of the fastest growing aviation industries in the world. With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation. From being primarily a government-owned industry, the Indian aviation industry is now dominated by privately owned full service airlines and low cost carriers. Private airlines account for around 75% share of the domestic aviation market. |
| |
Earlier air travel was a privilege only a few could afford, but today air travel has become much cheaper and can be afforded by a large number of people.
The aviation numbers beckoning the potential investor to India are awesome. India's Civil Aviation Ministry expects 80 million passengers by 2020. The number of air travellers increased by a record 38.5 per cent in 2006-7. India anticipates doubling of passenger traffic over the next decade.
To meet this demand, it will require 6,000 more pilots. In other words, more training institutes, more airports, more planes and more ground handling personnel -- all of which require investment.
Named by British Airways as the "next biggest after the US in the long-haul market", Indian aviation is moving at a very fast pace. Three years ago, there were 130 commercial aircraft, and the number has now swelled to 350. And growth is expected to continue apace: the Government estimates that India's fleet will reach approximately 500-550 aircraft by the end of 2010.
In the same period, the domestic market size will cross 60 million and international traffic 20 million. Aircraft manufacturer Airbus pegs India's demand at 1100 aircraft, worth US$ 105 billion, over the next 20 years. According to Civil Aviation Minister Praful Patel, the country will need 1,500 to 2,000 passenger planes in 10 years, up from 260 now.
India continues to show steady year on year growth, with a 7 per cent increase in the number of flights into and out of India (an additional 835 flights and more than 200,000 seats a month).
More passengers, more planes
India's civil aviation passenger growth, at 20 per cent, is among the highest in the world. The sector is slated to cruise far ahead of other Asian giants like China or even strong economies like France and Australia. The number of passengers who will be airborne by 2020 is a whopping 400 million.
The Centre for Asia Pacific Aviation (CAPA) predicts that domestic traffic will grow at 25 per cent to 30 per cent a year until 2010 and international traffic growth by 15 per cent, taking the overall market to more than 100 million passengers by the end of the decade. Indian carriers have 480 aircraft on order for delivery by 2012, which compares with a fleet size of 310 aircraft operating in the country today.
As pointed out by Minister of Civil Aviation, Praful Patel, the number of air travellers is about 0.8 per cent of the population. By the time even 10 per cent of the population begins to fly, India will need about 5,000 aircraft.
More diverse businesses in non-metropolitan regions are creating new demand for air services. Airlines are bulking up on capacity -- 10 Indian carriers placed orders for 400 aircraft worth US$ 15 billion.
Airlines on a buying spree
With such rapid growth in the sector, manufacturers like Boeing and Airbus are filling their order books fast.
Jet has placed an order of 20 Boeing 737-800 series aircraft, India's largest private airline. Airbus plans to invest more than US$ 1 billion in the Indian aviation industry in the next 10 years. Bombardier Aerospace, a Canada-based company that manufactures regional aircraft and business jets, is looking to tap the growing regional market in India for flight services.
SpiceJet has ordered 10 next-generation Boeing 737-800 aircraft valued at a list price of more than US$ 700 million.
|
|
