Indian Airspace would have to add capacities at 15-20 per cent CAGR over next 5-6 years to cater to growing opportunities of the sector and enhance its current fleet of aircraft to about 500 by 2020 from current level of 292, according to a Assocham-E&Y study.
The study estimates that 15-20 per cent CAGR growth rate and increased in aircraft fleet including fleet renewal would require mammoth investments of US$ 2 billion and total aircraft fleet would have to reach 1,000 in later future including replacement of current fleet of 292 aircraft which will require an additional estimated value of US$ 80 billion plus.
  According to the Study, the world class aircraft manufacturers believe that airlines in India would operate 1,140 aircraft by 2025 but in view of size of its economy, the number could go many more as by then Indian economy would have registered multiple growth rate.
Aggressive plans
In view the growth of aviation sector, India would have to undertake a massive and aggressive fleet acquisition plan to expand their fleets by nearly 250 aircraft by 2012 and subsequently add on to it to compete the already grown up economy of China, the study states.
The study further highlights that Boeing and Airbus continue to focus on India as commercial airline market in it is projected to serve as a source of strong growth for OEM (Original Equipment Manufacturers) and after market products and services. The chamber is also of the view that considerable investments will have to be committed to building and renewing the airport infrastructure to enable the airport system to handle over 400 million passengers per annum by 2020.
 A total of US$ 30 billion investment is considered  to be necessary to meet this target.  This includes the investments already identified to the extent of US$9 billion plus construction of greenfield facilities in various cities of the country.