Business Aviation - On a Roll, Uphill

Despite the excellent outlook for Indian business aviation, it faces daunting challenges, including woeful infrastructure that’s showing signs of cracking under the current requirements, leave alone projected growth. The problems are likely to get worse before they get better.

Pardon the expression, but there’s no denying that Indians are taking to flying like ducks to water. In recent years, the number of passengers has grown by over 30 per cent and it is safe to predict that this rate will be maintained or even exceeded over the next few years. A wide choice of airlines and attractive offers to fly at Re 1, where taxes are consigned to the fine print, are persuading more and more people to take to the skies.

And how is the business aviation segment faring? Ironically, the surge in passenger flights is driving business aviation as well! Many passengers are put off by the congestion experienced at airport lounges and the cascading delays especially in winter. It is a sad fact that air travel is not the luxury experience it was even a decade or two ago. While cut-rate passengers and the middle-class have no choice but to grin and bear it, sheer inconvenience is forcing many busy executives to grasp more convenient alternatives. Deregulation of business aviation, easy availability of splurge money in the rapidly-growing Indian economy and more liberal regulations governing foreign investment are persuading many businesses to take the plunge and acquire their own private taxis in the sky. The global ambitions of Indian companies are also driving demand like never before.

There were less than 40 private aircraft in India in 2005. Today the figure has crossed 200. The Directorate General of Civil Aviation reportedly has another 200 applications pending for private aircraft registration. More and more manufacturers see India as one of the strongest markets for business aircraft in the Asia-Pacific region. India is potentially bigger than China as it already has twice the number of billionaires. This segment is projected to grow at around 30-40 per cent annually.