For airlines around the world, air travel has been a crucial lifeline during the COVID-19 pandemic. Now, India is leading a wave of passenger jet orders, signalling a renewed interest in air travel. As companies and citizens look to the future, India is showing that the industry is optimistic, hopeful, and ready to take flight again.
1. India Sets Pace for Increased Aircraft Demand
India’s southward expansion in the aviation industry is currently setting the bar for increasing aircraft demand in the international market. With an impressive leeway of 8.9 percent in growth margin in 2017, India continues to stride forward towards a successful year. Not only has the airline service sector demanded more operational aircraft, but the appetite for a broad range of other aircraft from business jets to helicopters have only continued to skyrocket.
As India continues to excel in the private and commercial sector, the aviation industry closely follows suit. With the demand for aircrafts expected to reach 2,400 by 2020, Multinational Corporations (MNCs) and startups alike are quick to take the opportunity to invest in India’s promising potential. Reports from the Civil Aviation Minister’s office suggest the rise of India’s global aircraft order to stand at 19.2 percent, setting an impressive record.
- Leeway of 8.9 percent growth in 2017
- Demand for aircraft expected to reach 2,400 by 2020
- India’s global aircraft order stands at 19.2 percent
2. Bull Market for Fuelling India’s Flight Plans
As India embarks on its ambitious journey towards becoming a global air power, the country’s aviation industry is looking up. Led by an unprecedented influx of foreign investment, powerful financial institutions and the country’s roaring bull market, India’s aviation industry is all set to take flight and soar to new heights.
The positive market forces driving the Indian aviation powerhouse are showing no signs of slowing down as the economy continues to thrive. This has resulted in more foreign direct investment (FDI) in the sector, creating job opportunities and fuelling growth. Investors from across the globe have shown tremendous interest in the sector, making investments into new airports, aircraft leasing companies and more. In addition, the robust Indian bull market in stocks has opened up a world of opportunities to aviation investors.
From the buying of cheaper aircrafts for regional flights, to the building of new facilities for international travel, the Indian aviation scene is brimming with possibilities. Foreign money has been poured into the sector to take advantage of these opportunities, and the bull market has done the same, creating a virtuous cycle of investment and growth. The muscle of the financial market will certainly help India reach its lofty air travel targets.
3. Expansion of Indian Aviation Market Leads to New Orders
The Indian aviation market has seen major growth over the past decade, producing tremendous opportunities for businesses in the industry. This expansion has not only led to the establishment of new airlines, but also resulted in an increase in new orders for aircrafts and aircraft components.
Airbus, the leading aircraft manufacturer, has revealed that it has seen an impressive 250% rise in orders for their range of aircrafts in 2020. The majority of these orders have come from airlines in India, thanks to its enormous growth in passenger traffic and revenue.
- Additional Orders: Increasing consumer demand has meant more orders are placed with aircraft manufacturers.
- Increased Supplies: The orders have resulted in increased supplies of aircraft components, enabling airlines to keep up with the increasing demand.
- More Competitiveness: The large number of orders has made the Indian aviation market increasingly competitive.
The massive growth of the aviation industry in India has driven immense growth and generated lots of opportunities for businesses in the sector. It has also led to increased orders for aircrafts and aircraft components, which has improved the overall profitability of the aerospace industry.
4. Upward Prospects for Major Passenger Jet Manufacturers
Since the 1950s, major passenger jet manufacturers have been taking flight. The invention of the commercial jet engine has revolutionized air travel for global populations, and continues to do so. With rampant advancements in airfare, global accessibility, and technological advances driving up the demand for passenger jets, manufacturers are looking to the future with optimism.
- Newer, longer-range engines are increasing fuel efficiency and are becoming the standard
- Technological advances are making piloting more accurate and efficient
- Various countries are expanding their respective airlines as the middle and upper classes continue to grow
The upward trend in airline demand is projected to remain steady, with massive growth possibilities being especially seen in developing countries. Airlines in certain markets are expected to make dramatic jumps in the near future. This increase in demand is giving major passenger jet manufacturers reason to be excited as they look ahead to more expansive fleets and newer orders.
Whether it’s new intercontinental routes, supply of regional fleets, or expansion within commercial airline travel routes, these global changes are turning the passion for passenger jets into a steady, dependable business. Major Passenger jet manufacturers have positioned themselves to capitalize on these new opportunities. As global travel continues, the future of the airline industry looks assured.
With airline fleets worldwide needing an upgrade and ever-more travelers filling the skies, India is leading the charge in bringing more passenger jets to the wings of prosperity. India is showing that the sun is still shining on the global aviation industry – and the sky truly looks as bright as ever!