Industry experts have touted that leasing of private jets is the best business model. However, most of the private jets in India are bought by high-flying individuals and companies, which are in the petroleum, mining and other sectors that have plants away from the major metros.

What drives the growth of business jets in India or for that matter anywhere else? Two things for sure, a growing club of the super rich and corporate culture where time is money and jet-setting quite the norm. A rising number of Asians, particularly Indians, are moving into billionaire clubs and their new toys are private jets, yachts and mansions overseas. A recent report has pointed out that Asians may account for nearly 20 per cent of the high-end business jets fleet by 2017, all driven by growing affluence in India, China and South East Asia. That is a quantum jump from the less than 10 per cent Asians who own jets, of the nearly 18,000 business jets worldwide.

Considering the economies in Asia which are doing well compared to European and American economies, there is a direct corelation between heightened economic activity and growth of business aviation. India is top of the line in this emerging scenario. The Asian Development Bank has reported that Asia may exceed the total wealth in the US and Europe by 2030.

Business Tool and Lifestyle Combo

It is not just the Ambanis, the Jindals or the Tatas who have invested heavily in private jets; there is a growing breed of young Turks for whom business jet travel is both a business tool and lifestyle. And there are companies, in the mining, petrochemicals and other sectors that have their plants located in out backs, but have connected them to their corporate offices through their private jet.

Though the number of 183 private aircraft registered as non-scheduled operators with the Directorate General of Civil Aviation (DGCA) as of December 2012 is not impressive, there is going to be a big boom for business jets, irrespective of the costs. Business jets cost from about $17 million ( Rs. 85 crore) for Bombardier’s Learjet to about $50 million ( Rs. 250 crore) for Dassault Aviation SA’s Falcon 7X. Indians are buying.

Reports are that the general aviation segment is expected to grow at 10 per cent and by 2017 India will be among the three largest markets. The figures pegged for 2017 are nearly 300 new business jets and as many small aircraft, besides helicopters. The Business Aircraft Operators Association (BAOA) has projected that by 2020, the number of general aviation aircraft will touch 2,000, up from nearly 700 (including private jets, turboprops, helicopters and piston engines).

According to a forecast by Bombardier, business jet numbers are expected to touch 440 by 2019. Nilesh Pattanayak, Managing Director, South Asia, Bombardier Business Aircraft, has been quoted saying that there would be industry-wide deliveries of 325 aircraft till 2021. And the Brazilian jet manufacturers hopes to take its numbers to 20 in the next two years, aiming to garner $1 billion ( Rs. 5,000 crore) in sales here by 2018. Gulfstream is looking at capturing bulk of the business (40 per cent) in the long-range business jet market.

Hurdles on the Runway

This growth is despite the many constraints that the general aviation sector is facing in India. The foremost hurdle is lack of proper infrastructure. Unlike the commercial airline industry for which infrastructure development is falling in place, the general aviation sector is the neglected sibling.

Facilities at airports for business aviation are non-existent or sparse and at many airports they have to jostle for airspace and landing permits. Fixed based operations are happening here and there, but a pan-India plan does not really exist and business jet travellers have to make do with the same terminal facilities as airlines, thus robbing off some of the benefits of business jet travel as many a time the airports are crowded.

Connecting the Hinterland

Though there are over 400 airports in India, not all are operational. It is said that of those about 150 airports can handle business aviation traffic, but no serious effort has been made to develop those. There are a few private enterprises such as Reliance that are developing small airports, but utilisation has been limited. These operators need the necessary support from the government and it is anticipated that it will happen as the government is now open to such thinking. Connecting Tier-III cities with big commercial airliners does not make economic sense; the potential for business aviation to plug the gap is high.