×
E-PAPER ▾

E-paper

BUSINESS & FINANCE

Indian carriers need $50 bn to buy planes over 10 yrs: Report

| | Mumbai
Indian carriers need $50 bn to buy planes over 10 yrs: Report

Indian carriers, which have placed large aircraft purchase orders, will require a whopping USD 50 billion of financing to take the expected scheduled delivery of these planes over the next nearly 10 years, a report said.

With a total of 1,055 aircraft on order, as many as 100 planes consisting of wide-body, narrow-body and regional ones are to be delivered to Indian carriers each year for the next five years, said the report by Sydney-based aviation think-tank Centre for Asia Pacific Aviation (CAPA).

Against this background, Indian carriers will require an estimated USD 50 billion of financing to support projected deliveries until 2027, it said.

Stating that the unexpected recovery in Indian aviation since 2014 has changed the dynamics of the market and the demand for aircraft, 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 per cent year over the last three years years and a similar expansion is expected in the current financial year, it said.

Meanwhile, international traffic has also grown steadily at 8-10 per cent per annum in recent years, it added.

Projected fleet expansion represents a major opportunity for aircraft investors looking to deploy capital in new generation assets, the report said, adding, "However, despite the strength of underlying demand, operators in the Indian market face a number of challenges."

"On the cost front, Indian carriers pay some of the highest fuel taxation in the world and also incur taxes on aircraft leases. While on the supply side, infrastructure and skills shortages (particularly commanders) are potential constraints on growth," said the CAPA report.

 
 
 
 
 

TOP STORIES

Sunday Edition

View All

A legacy of conflict

19 Aug 2018 | Kumar Chellappan

A succession war is brewing in the DMK after Karunanidhi’s death, with both Stalin and Alagiri staking a claim to their father’s political legacy. This, along with the churning in the AIADMK after Jayalalithaa’s death, is bound to have an impact on the political landscape of Tamil Nadu in the run-up to 2019 Lok Sabha polls, writes Kumar Chellappan Tamil Nadu politics sans Muthuvel Karunanidhi is like the drama Hamlet without...

Read More

STATE EDITIONS

View All

Ranchi girl wins Int’l beauty contest

19 Aug 2018 | PNS | Ranchi

Yet another girl from the Capital City Khushboo Vijay became the winner of Miss India International Global 2018 and will be representing India next year in Malaysia 2019 for World Finale. The event was held in Guwahati on August 2018...

Read More

Page generated in 0.2213 seconds.