Boeing boosts India market forecast 15% on economy

Boeing Co. raised its 20-year forecast for Indian aircraft demand by 15 percent as faster economic growth encourages air travel in the world's second-most populous nation.

India will require 1,150 new commercial planes worth $130 billion over the next 20 years, the Chicago-based company said in a statement in New Delhi today. In July 2009, the planemaker forecast demand for 1,000 planes worth about $100 billion over two decades.

Boeing and Airbus SAS, the world's two biggest aircraft makers, have boosted sales in India as a doubling in per capita incomes over the past five years and the start of discount carriers makes air travel more affordable. The nation's airline passenger numbers may climb to a record 50 million this year from 44 million last year, Boeing said.

"There is strength and resilience in the Indian commercial sector," Dinesh Keskar, president of Boeing's local unit, said in the statement. "The potential for future growth of air travel, both domestically and internationally, is among the greatest in the world."

Jet Airways, SpiceJetA revival in travel demand alongside the global economic recovery helped Jet Airways (India) Ltd., the nation's biggest carrier, post its third consecutive quarterly profit in the three months ended June. Discount carrier SpiceJet Ltd. more than doubled net income in the period. The airline last week said it will buy 30 more Boeing 737-800s.New Delhi's airport also opened a new terminal last month, more than doubling the airport's capacity. India expects a four- fold surge in domestic air traffic to 180 million passengers annually by 2020, Prime Minister Manmohan Singh said July 3.Domestic airlines in India carried 25.7 million passengers in the first six months, according to the Ministry of Civil Aviation.Airbus said in March that India would need 1,030 new planes worth $138 billion over 20 years. The country has the world's fifth-biggest aircraft requirement and it will be the fastest- growing air travel market for 10 years, the Toulouse, France- based planemaker said.