‘Emerging markets to lead aircraft demand in the next 20 years’
Another 20 years, the aircraft industry is going to see it boom in India and other emerging markets. The domestic traffic would help generate an aircraft demand worth $5 trillion and the fleet across the aircraft industry is expected to double by 2034, said Airbus. The traffic outflow in India alone is estimated to be six times more during this period thus giving it the credit of the fastest growing markets globally. Airbus has also identified Mumbai and Delhi airports among the most crowded ones across the world. It is also pointed out that in the next 20 years, global passenger traffic will fatten at an average of 4.6% a year, hammering a need for some 32,600 aircrafts with a seating capability of above 100 seats. "By 2034, passenger and freighter fleets will more than double from today’s 19,000 aircraft to 38,500. Some 13,100 passenger and freighter aircraft will be replaced with more fuel efficient types," Airbus said. The Global Market forecast released at the 51st Paris International Air Show, showed that from the world’s first commercial flight in 1914 to today’s 32 million flights annually, it is very much evident that aviation has become a part of our every day’s life. "With some three billion air passengers, and 50 million tonnes of freight carried every year by planes, it is estimated that aviation contributes $2.4 trillion annually to global GDP." Emerging economies which account for around six billion people are the real perpetrators of the traffic growth. They are expected to grow at 5.8% per year compared to the advanced economies, where the growth is at the rate of 3.8% per year. Emerging markets also account to 31 per cent worldwide private consumption, where it is expected to grow by 43% in 2034. "Economic growth rates in emerging economies such as China, India, Middle East, Africa and Latin America will exceed the world average. A knock on effect is that middle classes will double to almost 5 billion people," Airbus said. Airbus noted that the tendency to travel by air is increasing in the emerging economies. 25% of the population takes one trip per year, and it is forecasted that this will increase to 74% in the next 20 years. In advanced countries, the tendency to travel would exceed two trips per year.
June 16, 2015 | 06:30 pm IST.
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