CAPA: 1,700 planes may be bought in next 2 yrs

MUMBAI: Indian carriers are likely to place orders for 1,500 to 1,700 planes in the next one to two years and Air India is expected to make the first move with a potential order for 500 aircraft, aviation consultancy CAPA said on Wednesday.

The total commercial Indian fleet of around 700 aircraft is smaller than some of the world’s largest individual airlines, CAPA said, adding that given the immense potential that exists, it stands to reason that there is a need to induct more aircraft.

In a report, CAPA said the Indian market in the post-COVID era is attracting global attention as arguably the most promising aviation market.

Almost every carrier in India is expected to order more aircraft in the next couple of years for fleet replacement as well as growth, given that the order book for most incumbent carriers could be considered conservative relative to the growth potential of the market over the next decade and beyond, it said.

In India, air traffic recovery has been amongst the strongest in the world. “Based on CAPA India’s proprietary traffic forecasts for the next decade and beyond, combined with our assessment of aircraft retirement cycles, we expect that Indian carriers will place orders for around 1,500-1,700 aircraft over the next 12-24+ months,” it said.

CAPA noted Air India is expected to make the first move, with reports that it will shortly place a historic order for close to 500 aircraft, marking a genuine turning point in Indian aviation.