Thursday, June 01, 2017

Private airlines in India to add 1,000 more passenger aircraft in next 10 years

Mumbai: Already number three in terms of passenger traffic, India will also become the third largest buyer of passenger with private airlines firming up orders of over 1,000 passenger aircraft. India will be behind United States and China after this mega order of passenger planes.
Indian civil aviation industry is one of the fastest growing industries with 19 per cent growth reported in the last three years. There are 496 aircraft in operation today and orders for 654 aircraft already placed and more are in pipeline, according to official data.
IndiGo has the largest order book in the region (and one of the largest in the world) at 415 aircraft, followed by SpiceJet (156) and GoAir (139), Centre for Asia Pacific Aviation (CAPA) report said. Vistara is expected to be the next carrier to place a major order, of up to 100 aircraft before June 2017, comprised of 50 narrow bodies and 50 widebodies. ­The airline is expected to stick with Airbus for narrowbody equipment and is likely to opt for the 777X for long haul operations, the report added.
CAPA said over the next decade, Indian carriers are scheduled to take delivery of over 600 aircraft with an estimated actual value of close to USD30 billion. Financing these orders could become challenging as market conditions tighten. As a result, not all of the narrowbody equipment may be inducted as scheduled. Several Indian carriers have embraced sale and leaseback transactions as a core strategy for generating capital to support and expand their operations.