The Indian market is likely to exceed the pre-COVID growth and domestic air traffic is expected to double.
GE Aerospace, a leading engine maker, has expressed optimism about the potential for recurring aircraft orders by Indian carriers as the country experiences massive growth in its civil aviation industry.
The Indian market is the world's third-largest aviation market, and there is room for growth in both wide-body and narrow-body aircraft.
The civil aviation ministry is also working on making India an international aviation hub, which will require Indian carriers to have more wide-body planes to carry international traffic.
GE Aerospace and Air India's Partnership
GE Aerospace has a firm order for 40 GEnx-1B and 20 GE9X engines for Air India's 20 Boeing 787 and 10 Boeing 777X aircraft that are on order.
Additionally, Air India has ordered for more than 800 LEAP engines from CFM, an equal joint venture between GE Aerospace and Safran Aircraft Engines, for its entire narrow-body purchase of 210 Airbus A320/A321neo aircraft and 190 Boeing 737 MAX-family aircraft.
The partnership is significant, given India's potential for growth in both wide-body and narrow-body aircraft.
Air India's Recent Orders
Air India has placed firm orders for 70 wide-body aircraft, including 40 from Airbus and 30 from Boeing, to be delivered over a period of time.
These planes will mainly cater to retirement and a little bit of growth, given that nearly half of the existing fleet in operation will be due for retirement when they are delivered.
India's Aviation Market Potential
India's domestic air traffic is expected to double, and the Indian market is likely to exceed pre-COVID growth.
The government is doing a fantastic job in ramping up infrastructure, and there will be huge traffic between Tier 1, 2, and 3 cities.
With the economy growing and disposable income rising, there is a huge opportunity for Indians to travel abroad.
The Indian middle-class population is around 440 million, more than the U.S. population which has 5,500 to 6,000 commercial aircraft, while India has 1,200 on order.
The potential for growth in India's aviation market is enormous.
Supply Chain Woes and Improvements
Supply chain issues are affecting various industries, including civil aviation. However, GE Aerospace's Country Head for South Asia & Indonesia, Vikram Rai, stated that the supply chain situation will be better in 2023 than in 2022.
There may still be some challenges, but GE Aerospace is closely engaging with suppliers, increasing its supply base, and continuously improving its operations.
Overall, GE Aerospace is excited to be in India's civil aviation sector, as most of the aircraft that are on order by domestic carriers are set to be powered by engines from GE Aerospace and CFM.
There is enormous potential for growth in India's aviation market, and GE Aerospace is poised to be a key player in the industry.