HYDERABAD- This week, Indian airlines and aircraft manufacturers Boeing and Airbus are poised to unveil new orders at Wings India 2024. Further they will showcase large jets, capitalizing on the thriving aviation market’s rapid expansion, particularly in international routes.
As India aims to establish itself as a key regional aviation hub comparable to Dubai and Singapore, the Wings India event in Hyderabad, spanning from Thursday to Sunday, is expected to attract representatives from lessors and government officials.
Wings India 2024: What to Expect?
Civil Aviation Minister Jyotiraditya Scindia, responding to inquiries about industry growth, expressed confidence that air traffic, airports, and fleet size will experience annual double-digit growth in the coming years.
While India currently stands as the world’s fastest-growing aviation market, with travel demand surpassing the availability of aircraft, the majority of international traffic is dominated by global carriers like Emirates.
New Orders
The latest entrant in India’s aviation landscape, Akasa Air (QP), set to commence international flights in 2024, is anticipated to reveal an order for approximately 150 Boeing 737 MAX narrowbody planes at the ongoing aviation show. This announcement adds to the recent surge in record orders by larger competitors.
It remains uncertain whether Akasa’s order encompasses Boeing’s contentious 737 MAX 9 planes, which have come under scrutiny from regulators following a cabin panel blowout earlier this month, further complicating the planemaker’s ongoing safety challenges. It’s noteworthy that Indian commercial airlines currently do not operate the 737 MAX 9 aircraft.
This activity persists despite the financial challenges faced by two budget carriers, Go First and SpiceJet (SG), following the collapse of two other Indian airlines in 2011.
However, according to Scindia, bankruptcies are now considered a thing of the past, and the surge in smaller regional airlines, coupled with government incentives for carriers to operate in smaller towns, has triggered a significant boom in the industry.
Rapid Infrastructure Expansion
India is channeling an investment of nearly $12 billion into the construction of new airports and the renovation of existing ones, with the goal of reaching approximately 200 airports within the next five years, up from the current count of 150.
Projections from aviation consultancy CAPA India and government data indicate a substantial rise in domestic passenger traffic to 350 million by 2030, compared to 152 million in 2023. Simultaneously, international travelers are expected to increase to 160 million.
With a current fleet of around 700 aircraft, India has pending orders for more than 1,500 planes from carriers such as IndiGo (6E), Air India (AI), and Akasa Air (QP). This figure underscores the market’s keen appetite for growth, particularly in the long-haul segment, as international air travel gains prominence, as highlighted by Remi Maillard, Managing Director of Airbus India and South Asia, in a statement to Reuters.
Aircraft on Display at Wings India 2024
During the Hyderabad event, the inaugural Airbus A350 from Air India and the Boeing 777-9, recognized as the world’s largest twin-engine passenger jet, will be showcased.
These aircraft constitute a segment of the Indian airline’s recent order acquisitions and are designated for deployment on its international routes.
However, there is a notable influx of aircraft orders intended for the domestic market, raising concerns about potential oversupply in the short term. Analysts caution that this scenario may pose challenges for airlines to generate profits in the face of intense competition.
Additional factors posing risks to growth encompass potential issues with engines and a shortage of pilots. This situation could be exacerbated due to government proposals to restrict flying times, prompted by concerns over pilot fatigue.
CAPA India recently noted, “Indian airlines are anticipated to have a very active 2024 on the international front, but we anticipate that the repercussions on financial performance may also become apparent.”
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