According to a recent report, Indian carriers are expected to have an order book for 2,000 planes by March next year. Currently, domestic airlines hold an order book for nearly 1,620 aircraft, excluding SpiceJet and grounded carrier Go First.
Growth Predictions for 2025
The report anticipates a significant rise in the order book, reaching 2,000 aircraft by March 2025. This growth projection hinges on Air India converting options to firm orders regularly and the possibility of other Indian carriers placing additional orders.
Remarkable Aircraft Orders in 2023
In 2023, Indian airlines outpaced the world in aircraft orders, and the total order book for Western aircraft ranks second globally, just behind the United States. The report underscores India’s potential to become the most exciting aviation market of the 21st century.
Challenges and Reforms
While acknowledging India’s unprecedented aviation growth, the report highlights the need for structural and institutional reforms to support this once-in-a-generation expansion. The call for reforms is essential to accommodate the increasing order book and sustain the aviation sector’s growth.
Major Orders and Industry Milestones
The report details key orders, including Air India’s announcement in February for 470 aircraft with an additional 370 options. IndiGo‘s historic order of 500 A320neo family aircraft in June 2023 is also highlighted, positioning the carrier with one of the largest outstanding order books globally.
Optimism and Future Growth
CAPA India notes that the current Indian order book is more than 2.5 times the size of the existing aircraft in service, reflecting unprecedented optimism about future growth. The report attributes the confidence of placing large orders to India’s relatively low air travel penetration, indicating substantial upside potential.
India’s Unique Position in Global Aviation
Emphasizing India’s unique position in terms of scale, growth, and geography, the report suggests that India needs to define its aviation market aspirations and formulate a strategic path to achieve them. The country’s decision-making in this regard will play a crucial role in shaping the future of the aviation sector.
(With PTI Inputs)