BRIAN WATT: India wants airplanes. Boeing got a firm order for 10 yesterday. But India’s on pace to buy 850 by the year 2026. But as Jason Paur reports, all those planes may not be needed.
JASON PAUR: Indian airlines are seeing double digit growth in passenger demand fueled by the nation’s surging economy. The result is numerous new domestic carriers springing up to cater to India’s 250 million strong middle class. But aviation analyst Richard Aboulafia warns supply may be outpacing demand.
RICHARD ABOULAFIA: One problem with any growth market is that people love it so much they pile on in until it becomes over inflated. And you’re certainly seeing that now in the India market. You’ve basically got 20 percent traffic growth, but 30 percent capacity growth and one day there will be a day of reckoning.
Despite those concerns, Boeing expects India to buy nearly $73 billion in new airplanes over the next 20 years.
I’m Jason Paur for Marketplace.
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