Transportation sector in India

[Xerxes]

Here are the highlights of AW article on the back of large commercial airliner orders from IndiGo and Air India. It is a good article. 
 

- Air India confirm earlier commitments for 470 aircrafts (400 narrow bodies and 70 wide bodies). About equal mix between Boeing and Airbus. 
 

- IndiGo has orders for a 500 large Airbus only narrow bodies.

 

- Air travel penetration is 0.1 trip per capita. Compared with 0.5 for PRC, 1.4 for France and 2.1 for US
 

- India’ GDP less than half of China and its airline capacity less than a third. 
 

- Infrastructure is key in the next 10 years. 80 new fields need to be built. 
 

- Airbus not keen on build final line in India. But rather work packages upstream to it. 
 

- Air India model is that of hub-and-spoke. They need a major hub in the south. In the running are: Chennai, Bengaluru and Hyderabad. 
 

- Not mentioned in the article, but I will say it, while there are huge tailwind on domestic routes (and therefore narrow bodies), when it comes to international travel, most of that Indian passenger-kilometres market was picked up by Gulf airlines in the past decades. And now with the rise of Turkey and potentially Saudi, there is even more competition to clawback those passenger-kilometres that are from India. It is a zero sum game in the wide body market. 
 

Edited July 18, 2023 by Xerxes

[whatstheofficerproblem]

Thanks for taking the time to post this @Xerxes. This made me circle back to the Jenga Report on the Fairfax thread, I see AOT potential in BIAL. This should be interesting to track, time is our friend here when it comes to BIAL.

[Xerxes]

Cheers officer !