Studies have found that businesses which use business aviation as a solution to some of their transportation challenges return more to shareholders than companies in the same industry that do not utilise business aviation

Business aviation is defined as the use of a general aviation airplane for a business purpose. It is essential to tens of thousands of companies of all types and sizes around the world that are trying to compete in a marketplace that demands speed, flexibility, efficiency and productivity. The vast majority of these companies are in the US—85 per cent—are small- and mid-size businesses, many of which are based in the dozens of markets across the US where the airlines have reduced or have inconvenient services. As the market continues to explode in India, this is much the same model.

A company’s decision to utilise business aviation for any mission depends on a variety of factors, including availability of commercial service in the departing or arrival destinations, the number of sites to be visited in a single day, the number of employees travelling, the need to discuss proprietary matters en route, the need to move specialised equipment and a host of other considerations. The following list details some of the primary reasons companies utilise business aviation as a solution to some of their transportation challenges:

• Accessing communities with little or no airline services
• Poor road infrastructure to reach the destination
• Reaching multiple destinations with efficiency
• Ensuring flexibility
• Increasing flexibility
• Providing a better return to shareholders
• Schedule predictability and reliability

With respect to the economy, general aviation contributes to economies by creating output, employment and earnings that would otherwise not occur. Direct impacts, such as the purchase of a new aircraft, multiply as they trigger transactions and create jobs elsewhere in the economy. Examples of this include pilots, mechanics, engineers, operations companies, ground handling, the Directorate General of Civil Aviation (DGCA) jobs, sales jobs, flight attendants, etc. Additional to these benefits there is also a financial benefit to the government given India’s current tax codes. The bottom line is, studies have found that businesses which use business aviation as a solution to some of their transportation challenges return more to shareholders than companies in the same industry that do not utilise business aviation. And if India businesses are more productive and profitable, this translates to a better, stronger and more productive Indian economy.