Airbus expects Indian airlines to triple fleets over next decade

By Shivansh Tiwary

HYDERABAD, Jan 29 (Reuters) - Airbus AIR.PA said on Thursday it expects Indian carriers to triple the size of their fleets to 2,250 jets over the next decade, riding resilient economic growth, an expanding middle class and a surge of first-time flyers.

In a similar outlook on Wednesday for India and South Asia, Boeing projected that airlines in the region, a key battleground for planemakers now dominated by Airbus, would require nearly 3,300 new aircraft by 2044.

The aerospace industry watches the planemakers' regional forecasts closely, as India is the world’s third-largest domestic aviation market after the United States and China, led by the two biggest carriers, IndiGo INGL.NS and Air India.

But India’s aviation sector is still at an early stage, with trips per capita amounting to 0.13, or far below comparable regions, said Jürgen Westermeier, Airbus president and managing director for India and South Asia.

This leaves substantial room for more Indians to adopt air travel, he added in a forecast issued on the second day of India’s biennial civil aviation air show.

"Some services in aerospace will now benefit from the reduction in tariffs after the India-EU trade agreement," Westermeier said, referring to this week's landmark deal.

The world’s fastest‑growing domestic aviation market, India has mirrored a global rush for large aircraft orders as carriers expand capacity, retire fuel‑hungry older jets and respond to booming travel demand after the COVID-19 pandemic.

Indian carriers have placed some of the biggest jet orders in recent years, ordering at a scale intended to drive fleet growth, in contrast to mature markets primarily looking to replace older planes.

Airbus retained its title as the world’s largest planemaker last year despite headwinds brought by engine shortages, supply chain bottlenecks and tariff pressures.