Message from President, BAOA

President’s Note

As we head into the second half of 2017, I would like to reflect on the present state of affairs of our industry, and the road ahead for us.

The growth of Business and General Aviation has slowed down to a meagre 2 per cent CAGR since 2013. At the present rate, from 487 aircraft in 2015 (jets, turboprops and helicopters), we will grow to 655 aircraft by 2030. If the same growth was to take place at a fast paced 12 per cent CAGR, this figure would reach 2666 by 2039, almost four times the numbers as achieved in the lower growth rate. The potential loss between the two figures is equivalent to approximately 20,000 direct jobs and 1,30,000 induced jobs, besides a loss of Rs. 1762 crore (approximately $270 million) to the GDP (All figures from BAOA-Martin Consulting Report 2016). In the overall scheme of things this may seem to be a small number, but when you put it in perspective of the induced and compounded growth effect of business aviation, we could be looking at a loss which is much bigger than the numbers given in the said report. Every time a business aviation aircraft is used to transport a business leader for carrying out a business transaction successfully, it contributes to the GDP of the country. These are intangible benefits, which cannot be broken down into mathematical numbers, but there is no doubt in anyone’s mind that business aviation is a major contributor for “Ease of Doing Business” in the country. Achieving a higher growth rate is a win-win for all, and the government must do everything to make it happen.

Another major cause for concern is the loss of business to foreign operators by Indian charter companies in recent years. Slow growth rates, and restrictive regulations and high taxes have left Indian charter companies sluggish, and not able to compete with the more agile and flexible operations and services provided by foreign charter companies. Be it restrictions on EDTO, FDTL, cross utilization of crew, or simply higher rates of taxes, Indian charter operators are at a disadvantage vis a vis the foreign operators, who seem to have captured this market substantially. We at BAOA are fully supportive of free enterprise and global competition, and welcome these companies to provide services in India. However, we do urge the authorities to provide a level playing field to Indian companies who are providing similar services and would like to see their growth. Every time a charter is carried out by a foreign operator, the country loses valuable foreign exchange, tax contribution to the Indian government, and jobs which could have been created for our citizens. BAOA is committed to taking this matter up with the authorities to ensure that Indian operators are able to compete under the same rules. Thereafter, let the market forces decide on who gets the business.

I look forward getting feedback from everyone in this industry (members, or otherwise), and assure you that all genuine issues will be taken to the appropriate level. You can contact me at rohitkapur@baoa.in. I look forward to your comments.

Till then, Happy Landings and Safe Flying!