Airbus upbeat on India demand

NEW DELHI: Notwithstanding the turbulence in the Indian aviation sector, European aircraft manufacturer Airbus is bullish and does not see any downward revision in its long-term outlook for aircraft demand in the country. The aviation giant expects a turnaround of the domestic aviation sector in 2010.

���In the long run, we are bullish on Indian aviation sector with the economy growing at 7.5% on an average. The aviation infrastructure are being put in place. Over the next 10-15 years, the industry would go strength to strength. We have already seen the bottoming-out,��� Airbus executive VP (sales and marketing) Kiran Rao said. Airbus has forecast that India would require 992 aircraft with a total value of $120 billion by 2026. In its 2008 market projection for India, Airbus said the total fleet would comprise 670 single-aisle aircraft and 227 twin-aisle aircraft.

���We do not see any downward revision in our earlier projection. Passenger demand would remain strong in the long run,��� Mr Rao said.

Domestic air traffic fell 8.56% to 20.7 million in January-June 2009 on economic slowdown. The airline industry is estimated to have lost $2 billion in the last financial year mainly on account of high fuel price, irrational pricing and weak passenger demand.