Mumbai: Plane makers Airbus and Boeing remain bullish on the demand for civilian aircraft from India despite a much slower GDP growth in the last two years. Analysts and industry experts, however, warn of a lower than anticipated passenger growth unless urgent measures are taken to revive the sector
In the market forecast last year Airbus and Boeing estimated a demand for 1232 and 1450 planes respectively over the next two decades.These estimates were drawn up when Kingfisher Airlines was still in service and have estimated India's GDP growth at over 8%. Similarly a civil aviation ministry report for the formulation of the 12th five year plan (2012-17) factored 12 percent average annual growth in domestic air traffic between 2012-2017.
In reality the GDP growth has slowed down to 5 percent in last fiscal and is estimated to grow around 6 percent this year. The domestic air traffic growth too is subdued and analysts and airlines are expecting around 6 % growth this year.
Despite the obvious slowdown the plane makers remain optimistic about their India forecast.
24/08/13 Aneesh Phadnis/Business Standard
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In the market forecast last year Airbus and Boeing estimated a demand for 1232 and 1450 planes respectively over the next two decades.These estimates were drawn up when Kingfisher Airlines was still in service and have estimated India's GDP growth at over 8%. Similarly a civil aviation ministry report for the formulation of the 12th five year plan (2012-17) factored 12 percent average annual growth in domestic air traffic between 2012-2017.
In reality the GDP growth has slowed down to 5 percent in last fiscal and is estimated to grow around 6 percent this year. The domestic air traffic growth too is subdued and analysts and airlines are expecting around 6 % growth this year.
Despite the obvious slowdown the plane makers remain optimistic about their India forecast.
24/08/13 Aneesh Phadnis/Business Standard
