India's expanding aviation sector will require 1,150 commercial jets valued at USD$130 billion over the next 20 years, a Boeing executive said on Tuesday.
Dinesh Keskar, the head of Boeing's operations in India, said with more private carriers entering the aviation sector the demand for aircraft was increasing.
"This is a market representing more than 4 percent of Boeing commercial airplanes' worldwide forecast," he told reporters. In 2009, the firm had said India would require 1,000 planes worth USD$100 billion over 20 years.
"We went through the deepest recession in the history of aviation but now India's recovery is one of the fastest," Keskar said. "We believe there will be a record 50 million passengers this year if the trend continues," he said. Indian airlines carried 44 million passengers in 2009.
Keskar also said that state carrier Air India was entitled to compensation from Boeing for delays in the delivery of Dreamliner 787s.
Last month Air India said it has sought compensation from Boeing for the delay in deliveries of the 787. The first was originally scheduled to be delivered in 2008. Air India says it has plans to acquire 27 787s from Boeing in phases.
Boeing plans the first delivery of the lightweight carbon-composite 787 Dreamliner, which is already more than two years behind schedule, in the fourth quarter. But it also said the delivery may slip into 2011.
"Delays in 787 delivery entitles Air India for a compensation," Keskar said.