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Indian airlines to add new jets in booming aviation market

Reuters  |  HYDERABAD 

By Ajmera

HYDERABAD (Reuters) - Jet Airways, and AirAsia are planning to add new jets to their fleets as they look to expand in the world's fastest-growing market, the carriers said on Thursday.

Domestic Indian passenger traffic increased by 17.9 percent in January from a year earlier, marking the 41st consecutive month of double-digit growth, the said in a monthly update released on Thursday.

Civil Secretary said as long as remained below $80 per barrel, he expected the Indian market to grow at a compound annual growth rate of 15 percent for the next 20 years or so.

"We are committed to ensure that new airports are built, better are provided, so that there is no congestion in the skies," Choubey said at the Wings airshow.

are scrambling to add more jets to meet demand for more domestic and international flights, making it one of the most targeted sales markets for jet manufacturers SE and Boeing Co.

"The growth of the domestic Indian (aviation) market is the highest in the world," Boeing Senior Vice President Pacific and Sales said. "Every segment of traffic in and out of is going to grow for the next 20 years."

Boeing said in July it expected to order up to 2,100 new aircraft worth $290 billion over the next 20 years, calling it the highest-ever forecast for Asia's third-largest economy.

hopes to close a deal to buy another 75 narrowbody jets by the end of March, its told reporters on the sidelines of the airshow.

The last year finalised a deal to buy a separate 75 MAX aircraft and said it was in "serious talks" for 75 more.

Dube said it would finalise the deal with one of the plane manufacturers, alluding to Boeing or

AirAsia is looking to expand its fleet to 60 jets from the current 14 over the next five years, a said. The airline's parent, AirAsia Bhd, said in January it was considering an IPO of the Indian arm.

SpiceJet's said his was studying the feasibility of Boeing's and Airbus' jets for longer haul international destinations, including and United States, as it looks to expand beyond short-haul international routes.

When asked if a new middle-of-the-market jet that Boeing is studying would fit the bill for cost effective long-haul travel, Singh said: "conceptually it sounds interesting".

In July, SpiceJet had signed a provisional deal to buy 40 MAX 10 jets.

He also said the low-cost carrier was close to announcing an on board facility on its flights, which would offer in-flight entertainment including streaming movies, cricket and as well as shopping.

The move, which could boost SpiceJet's ancillary revenue, is likely to come by April, he said.

Separately, on Thursday reported IndiGo, India's biggest airline, plans to order as many as 50 A330 wide-body jets, citing people with knowledge of the matter.

(Reporting by Ajmera; Writing by Jamie Freed; Editing by Mark Potter/Euan Rocha/David Evans)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, March 08 2018. 22:40 IST