Aerospace Companies Look To Tap The Indian Aviation Market

Global players in the aerospace sector are increasing their interest in India. Companies such as Boeing , Northrop Grumman, Lockheed Martin, Airbus, Rolls Royce, Bell Helicopter, Textron, ATR and Bombardier are all looking to gain from the prospects the Indian aviation sector has to offer.
On account of numerous airline operators facing severe financial crisis and stagnating aviation markets around the world, manufacturers and aerospace service providers are turning to a developing aviation market such as India.
The future of the civil aviation sector shows promise and scope for robust growth. According to the Ministry of Civil Aviation in India, passenger traffic has shown significant growth in the last two years. It has grown from 48.8 million people in 2003-2004 to 118 million in 2007-2008 ' an annual growth of about 56%. Although India's flight penetration is only 0.2 per capita, while US has 2.2 per capita, the sector shows tremendous potential, as increase in penetration will give way to millions of passengers.
Also, the sector in India currently consists of a fleet of 350 aircraft for commercial aviation. This market is expected to reach 1000 aircraft by 2020. Airplane replacements would amount to a market of $80 billion and an additional $30 billion would be required for development of airport facilities and infrastructure. There is also scope for helicopter manufactures.
20/11/08 Trading Markets, USA

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Categories: Foreign Nov 2008, Indian Aviation- In General Nov 2008