Indian carriers need $50bn to buy planes over 10yrs: Report
Indian carriers will require a whopping $50bn to take the expected scheduled delivery of ordered planes over the next 10 years, Sydney-based Centre for Asia Pacific Aviation said. With a total of 1,055 aircraft on order, as many as 100 planes consisting wide-body, narrow-body, and regional ones are to be delivered to Indian carriers each year for the next five years, said CAPA.
India's domestic market has grown 20% in 3 years: CAPA
Stating that the unexpected recovery in Indian aviation since 2014 has changed the dynamics of the market, the CAPA said, "Positive market conditions have led Indian carriers to place bets on expansion on an unprecedented scale, with as many as 723 aircraft ordered since 2014 and more orders expected." India's domestic market has grown at around 20% over the last three years, it said.
Indian carriers pay some of the highest fuel taxations
Meanwhile, international traffic also grew steadily at 8-10% per annum, CAPA said. The projected fleet expansion represents a major opportunity for aircraft investors looking to deploy capital in new generation assets, it said, adding, "The operators in Indian market face a number of challenges." On the cost front, Indian carriers pay some of the highest fuel taxations globally and incur taxes on aircraft leases.
