India Will Lead South Asia To Become Fastest-Growing Aviation Market
HYDERABAD: Boeing [NYSE: BA] forecasts the South Asia region will become the fastest-growing commercial aviation market with more than 8% annual traffic growth over the next 20 years. Supported by a strong economy, India’s rapidly expanding middle class will drive growth in regional air travel.
To meet rising passenger and cargo demand, South Asian carriers are projected to quadruple the size of their fleets over the next two decades. Carriers will require more than 2,700 new airplanes to address growth and fleet replacement, according to Boeing’s Commercial Market Outlook (CMO), an annual forecast of 20-year demand for commercial airplanes and related services.
“Indian low-cost carriers continue to stimulate demand and connect emerging regions with low fares, holding nearly a 90% share of all domestic seats in the region. This reflects the rapid pace of the region’s recovery and economic activity, as traffic and capacity now exceed pre-pandemic levels,” said Darren Hulst, Boeing vice president of Commercial Marketing.
“Similarly, long-haul traffic and capacity to and from India and South Asia lead the way globally, relative to 2019, as nonstop services to North America, Europe, East Asia and Oceania continue to be added. Strong economic growth and confidence in the commercial aviation market have led to record orders for new, more efficient airplanes in India.”
The South Asia market is expected to quadruple its fleet over the next two decades to meet passenger demand. Boeing forecasts the region will require 37,000 pilots and 38,000 maintenance technicians over the next 20 years, driven primarily from growing demand in India.
The South Asia CMO includes these projections through 2042:
● Of 2,705 new deliveries, 72% will support fleet growth while 28% will replace older jets with more fuel-efficient models.
● Single-aisle airplanes will account for more than 85% of new airplane deliveries.
