NEW DELHI (Reuters) – Boeing Co (N: BA) said Tuesday it expects Indian airlines to order 1,850 new aircraft worth $ 265 billion over the next 20 years, compared with an earlier forecast, thanks to the new aviation rules the manufacturer said will boost demand.
In March, the company had forecast that demand for India could add up to 1,740 aircraft orders more than 20 years.
“India continues to have a strong commercial aerospace market and the largest increase in domestic traffic in the world,” said Dinesh Keskar, senior vice president, Asia Pacific and India Sales, Boeing Commercial Airplanes.
“With the new aviation policies in place, we see even more opportunities, and maintain confidence in the market sector and airlines in India,” Keskar said.
Last month, India revised rules governing the aviation industry, liberalization of rules for national carriers to travel abroad and spreading boom in air travel in the country to smaller cities by limiting tariffs air and the opening of new airports.
Boeing said in an email that predicts single-aisle airplanes, such as the next generation 737 and 737 Max, to offset most of the new releases, with India likely to need about 1,560 such aircraft.
Boeing says it has more than 85 percent market share of widebody aircraft in India, while rival Airbus (PA: AIR) sells most preferred small aircraft on carriers cost (LCC) as InterGlobe Aviation of (NS: ENGL) indigo.
LCCs dominate the skies over India and represent more than 60 percent of flights in the country.
Boeing expects global demand for 39,620 aircraft in the next 20 years, putting the total participation in India less than 5 percent.