LAXDESI From United States of America, joined May 2005, 5086 posts, RR: 47 Posted (9 years 8 months 1 week 4 days 9 hours ago) and read 3241 times:
Boeing to revise India forecast in June. Currently, there is a large divergence between Boeing forecast of 492 aircrafts and Airbus forecast of 900 aircrafts over the next twenty years(2006 to 2025). IMO, Boeing is being very conservative in its forecast. Here's why:
#For the fiscal year 2004-05, total traffic(domestic & international) was 60 million and growing at 22%. Aviation growth for a developing economy is about a 1.3 factor of GDP growth. Given favourable demographics of India and further liberalization, one can expect the Indian economy to grow at an average rate of at least 7% which translates to a GDP of 4 times the current level by 2025. Applying the multiplier of 1.3 on quadrupling of GDP, total passenger traffic should be about 300 million by 2025.
The current traffic of 60 million is supported by about 225 aircrafts. India would need at least 1000 aircrafts by 2025 to support 300 million passengers. Metro airport expansion/modernisation and new airports at BLR/HYD would be completed by 2025. Expected capacity of five metro airports is expected to be around 250 million by 2025 and a lot of additional capacity at secondary cities will come on-line by 2025.
In summary, Boeing is way off in its forecast for Indian market.
Boeing on Monday said it will revise its forecast for Indian civil aviation market in June and expects the aircraft needs of the country will be definitely less than that of Airbus, its Trans-Atlantic rival. "We will be revising our forecast for the country in June. According to the Airbus forecast, the requirement here is 900 airplanes valued around $90 billion. Its more than triple of our last year forecast...and I believe the actual requirement would be somewhere in between," Boeing Commercial Airplane senior vice president (Sales) Dinesh A Keskar told reporters here.
According to Boeing's last year forecast, Indian carriers will buy 492 aircraft for about USD 36 billion over the next 20 years. Meanwhile, according to Airbus forecast last month, the European airplane maker had said the Indian civil aviation market would need about 900 aircraft valued $90 billion.
CRJ900 From Norway, joined Jun 2004, 2360 posts, RR: 1
Reply 1, posted (9 years 8 months 1 week 4 days 7 hours ago) and read 3086 times:
I think Boeing is wise to be conservative. We live in a turbulent world and everything may have changed by 2025... latest is that some Indian companies are outsourcing work to even-lower-cost countries... perhaps that will curb this amazing growth...?
Perhaps 200-seat A321s and B739s will be the winners on domestic routes...
Lehpron From United States of America, joined Jul 2001, 7028 posts, RR: 19
Reply 3, posted (9 years 8 months 1 week 4 days 2 hours ago) and read 2857 times:
I would not trust either forecast unless I was able to see their data and/or methodology; this trend-split crap is getting ridiculus. Companies are in the business of making money, they are not in the business of being objective or to show how things are apart from their view alone. It is about their bottomline, their image, their future and direct customers. The real value of aircraft required is likely in the middle. Except for Tabacco, there are not many industries where companies downplay the needs of their products. I worry for any of you who buy into either Airbus' or Boeing's forecasts. Boeing/Airbus are not going to be objective, so I have trouble trusting them.
The meaning of life is curiosity; we were put on this planet to explore opportunities.