Indian aviation industry: Boeing expects India to be the fastest growing aviation market

US aircraft maker Boeing expects Indian airlines to increase capacity by at least 25% over the next year. Although it may decline gradually, the aircraft manufacturer still said the country would be the fastest growing aviation market with an annual growth of 7% until 2040.

Boeing currently counts SpiceJet, Akasa Air and the Air India Group among its customers.

“We expect airlines to rebound quickly and add more than 25% more seats annually to the market,” said Dave Schulte, general manager of regional marketing at Boeing Commercial Airplanes.

Indian airlines will lead air traffic growth through 2040, growing by 6.9%. Southeast Asia market growth is set at 5.5%, China (5.4%), Africa (5.4%) and Latin America (4.8%), Boeing said in a presentation.

However, Boeing highlighted many risks that Indian airlines face, including high fuel prices and low airfare returns. According to the company, fuel costs are 90% higher for Indian carriers, while compared to their global counterparts, Indian airlines can charge one of the lowest fares in the world for similar travel distance.

Boeing expects to win part of the upcoming mega order from Air India, owned by Tat Group.