Mumbai: Despite slowing growth in India, Airbus and Boeing remain bullish on the demand for civilian aircraft from the country. Analysts and industry experts, however, warn of lower-than-anticipated passenger growth, unless urgent steps are taken to revive the sector.
In their market forecasts last year, Airbus and Boeing had estimated demand for 1,232 and 1,450 planes from India, respectively through the next two decades. However, that was at a time when Kingfisher Airlines was still in service. Also, they had estimated growth in India’s gross domestic product (GDP) at about eight per cent. Similarly, a civil aviation ministry report for the formulation of the 12th five-year Plan (2012-17) had factored in 12 per cent average annual growth in domestic air traffic between 2012 and 2017.
Last financial year, GDP growth slowed to five per cent; this year, it is estimated to grow about six per cent. Domestic air traffic growth, too, is subdued. Analysts and airlines expect growth of about six per cent this year.
31/08/13 Aneesh Phadnis/Business Standard
To Read the News in full at Source, Click the Headline
In their market forecasts last year, Airbus and Boeing had estimated demand for 1,232 and 1,450 planes from India, respectively through the next two decades. However, that was at a time when Kingfisher Airlines was still in service. Also, they had estimated growth in India’s gross domestic product (GDP) at about eight per cent. Similarly, a civil aviation ministry report for the formulation of the 12th five-year Plan (2012-17) had factored in 12 per cent average annual growth in domestic air traffic between 2012 and 2017.
Last financial year, GDP growth slowed to five per cent; this year, it is estimated to grow about six per cent. Domestic air traffic growth, too, is subdued. Analysts and airlines expect growth of about six per cent this year.
31/08/13 Aneesh Phadnis/Business Standard
