The French aircraft manager Airbus is planning to deliver one plane every week for Indian airlines for upcoming 10 years to meet the exponential rise in number of air passengers which will occur in next two decades.
Airbus, the French manufacturer currently has over 300 aircrafts in operation in India flown by a number or private airlines, has forecasted that air passenger traffic in India will grow exponentially over the next 20 years, as fast as the world average. The exponential rise in number of passengers will translate into need of 1,750 aircrafts during the two decades. As per Airbus estimations, by 2036, Indians will make four times as many flights as today which means there will be a growth of 8.1% per year over the next 20 years, which is almost twice as fast as global growth of 4.4% annually.
The reason Airbus is so bullish about Indian civil aviation market is because of the he fast expanding economy, rising wealth and urbanization, ambitious government-backed regional connectivity programmes are also set to enhance demand for air travel. The current GDP per capita is lower in India which is seen as a positive sign since this means the potential of expansion and growth is much higher. Over last three years, the passenger growth in India has been more than 20 percent, yet there is potential of about 110 to 120 million passengers compared to huge numbers in terms of train tickets. Airbus believes that by 2019-20, India will become the third-largest aviation market in the world, overtaking UK and will be right behind China and US on the top two positions.
With the estimation these demographics, the European aircraft manufacturer eyes a big potential sale in Indian civil aviation. Airbus currently has 300 aircrafts in operation, 530 aircrafts are yet to be delivered in Indian order book and eyes a potential of 1750 in next 10 years. And Airbus can gain the grab since it is open to coherently work with Make in India scheme. This is the reason why Airbus is planning to deliver one airplane to India, every week for next 10 years.