LEAVING ON A
An EXPRESS INTERNATIONAL
Financial Express (All Editions)
Report on Business Aviation
While the Indian scheduled air carrier sector is facing hard times due to
escalating operating cost, the Indian private and business jet sector is still
growing at a phenomenal rate. This sector is expected to trounce the
commercial sector by operational fleet within the next three to five years
E Flying now is all about money
ven the minister of civil avi-
ation, Praful Patel agrees
that the Indian private jet
sector will explode to 500 air-
craft within the next five
years or earlier.
Easier norms as compared to those
governing commercial aircraft and lower
operating cost coupled with fact that most
individuals that own private aircraft can shire Hathway promoted Netjets, Execu- entertainment and communications
very well afford them make the sector one jets and Vistajets have announced plans equipment.
to watch out for. to set up shop in India. Most of the biggest companies in
India is already considered the coun- Already there are a number of charter India like Real estate major DLF
try with the fastest growing number of companies in India like Manav Singh pro- group, TVS Motors, power and air-
millionaires and billionaires. moted Club One Air and Religare pro- port major GMR Group and con-
According to the annual World Wealth moted Ran air in expansion mode. sumer durables giant Videocon have
Report released by investment major Mer- Charter firms are huge contributors to all received permission to buy or
rill Lynch and consultancy Capgemini, the growth of private jets in the country . lease corporate jets. Others like Re-
India saw its millionaire population surg- Many potential business jet owners travel liance Industries, the UB Group and
ing in 2007 by 22.6% -- highest in the world. by charter aircraft and then decide to buy the Raymonds group, which already
The number of High-Net Worth Individ- their own looking at the benefits. have corporate jets, are adding to
uals (HNWIs) in India grew to about Sensing a burgeoning market, com- their fleets.
1,23,000 at the end of 2007, up from 100,015 mercial airlines like Air Deccan and Kin- Videocon already has a Beech
last year. fisher are also looking at starting corpo- King Air 350, DLF a Gulfstream and
And looking at the sheer value for rate charter airlines. a Sikorsky S-92, TVS Motors a
money that owning a business jet brings, According to sources,the DGCA has al- Beechcraft Superking Air B-200 and
the country's HNWIs are acquiring their ready given the green light to around 70 Reliance Industries an Airbus A319
jets at record speed. odd companies to buy around 100 busi- CJ, a Falcon 900EX and a Global Ex-
And the jets do cost a pretty bundle. ness and personal aircraft since the begin- press XRS apart from others.
The new machines range from $1 million ning of this year.These include a smorgas- Experts believe buying a jet may be
to a staggering $80 million. The high-end board of VLJs, helicopters, turboprops cheaper than chartering in the long
features include a personal bedroom, of- (propeller driven aircraft), helicopters run as the hourly flying cost of an
fice space, modern communication facil- and huge business jets fitted with board- owned jet is around Rs 35,000 to Rs 1.5
ities and even a jacuzzi. room like interiors and state of the art lakh as against a total cost for a char-
At present, the country's private jet tered aircraft which is around Rs 1.5
market is dominated by US-based Cessna lakhs to Rs 3.5 lakhs.
and Hawker Beechcraft,but other players
LOOK WHO'S Some of the biggest private jets
especially high-end players like Boeing, FLYING like the Gulfstream or Bomabardier
Gulfstream, Embraer and Bombardier Global express have a range of 7,000
SOME OF THE TOP INDIAN
are fast catching up. BUSINESSMEN WHO OWN PRIVATE JETS nautical miles and include facilities
All the major players, around a dozen, like king size beds, internet and
have already announced plans to launch RATAN TATA phone connections and a dedicated
major distribution and after-sales main- Falcon 2000 service crew including an onboard
tenance facilities in the country to expand gourmet chef.
and capture a major chunk of the Indian MUKESH AMBANI And the orders are mainly coming
private aircraft market. from companies involved in mining,
Bombardier Global Express, Falcon
Last year Hawker Beechcraft opened oil and gas,manufacturing,retail and
900EX, Airbus Corporate Jet
their exclusive maintenance and distribu- construction.
tion centre through a partnership with But why is India Inc going crazy to
Gurgaon based Interglobe Aviation at the ANIL AMBANI buy the jets at such extraordinary
Indira Gandhi International Airport in Falcon 2000, Falcon 7X, prices. Arun Sharma, who heads a
New Delhi. Bombardier Global Express company called The Aviators that of-
So after Bentleys and Rolls Royces, In- fers complete solutions for business
dia's super rich are now looking at Gulf- LAKSHMI MITTAL ,
aviation in the country says the rea-
streams and Aerion jets. Bombardier Global Express, son has everything to do with the
At least six HNWIs from india have al- Gulfstream GV .
economy "With the economy grow-
ready placed orders for the supersonic ing up and more money being avail-
Aerion jet priced at a swooning $80 mil- able, perspectives are changing. Peo-
KP SINGH OF DLF
lion.The aircraft is expected to come into ple are looking forward to luxury and
production in 2012 but already six Indians Gulfstream GIV comfort that comes with a private jet,"
among 80 globally have put up around Sharma says.
$500,000 to book their Aerion. VIJAY MALLYA The amount of time saved and flex-
Data from both the Centre of Asia Pa- Airbus Corporate Jet ibility allowed due to the private air-
cific Aviation (CAPA) and the Directorate craft is unrivalled.
General of Civil Aviation (DGCA) agree GAUTAM SINGHANIA According to Nilesh Pattanayak
that the private jets market in the country Challenger 604 who represents Bombardier in India,
has jumped from barely two dozen five every 400 hours flown on a private jet
years ago to around 200 now with the In- saves around a months time.And well
TULSI TANTI OF SUZLON
dian market currently valued at around "Time is Money" says an aviation an-
Rs 400 crores. alysts from Mukesh Ambani's Re-
The biggest companies like Boeing and liance Industries.
Airbus have been in the country since the Even the Prime Minister's office
1950s and companies like Bombardier ad- believes in this model of efficiency
mit that more than half their global rev- improvement in operations. The In-
enues over the next few years will come dian Air Force has ordered three Boe-
from India. ing Business jets for the Prime Min-
And its not just Indians buying the air- ister's international travel. Of these,
craft that is leading to the huge surge but two have already been delivered and
a number of private charter companies are being refurbished while the third
based out of Europe and Asia like Berk- is on its way .