Takeoff A full service FBO seems to be a distant reality in India and all that can be found here is ‘limited use’ FBO. They are single service providers, having one or a few facilities. In fact, with regard to ground handling services, some of the airline operators prefer to do it themselves.

Way bac k in 1926, the term fixed-base operator, or commonly abbreviated FBO, was coined in the US after the passage of the Air Commerce Act. Eighty-five years later, the FBO concept in its totality does not exist in India or if it does, it is highly fragmented and yet to take off. However with the aviation industry shifting gears and moving on the fast track in India, there is sudden realisation that FBO needs to be formalised the way it is elsewhere.

As India Inc. is in a growth momentum, corporate understand that time is of key essence. Owning a jet is not just ‘value for money’, but also ‘time is money’. Business aviation is up-and-coming and so is the demand for FBO. But even as the private industry is flourishing and private jets have become a regular mode of transportation for the Indian corporate world, a full service FBO, as in Europe or the US or even the Middle East, is still a far cry in India.

Growth rates in Asia and the Middle East have generally been higher, but in most cases that growth reflects the low starting point for business aviation in these locations. Expansion of traffic is certainly fuelling FBO expansion in these potentially promising regions, but in countries such as China and India at least, the process of rolling out dedicated handling infrastructure for business aircraft is still far from straightforward.

Many non-scheduled operators (NSOPs) even doubt whether India really has an FBO and all that can be seen are mere VIP lounges. For them, FBO is a set-up which facilitates a whole lot of services which not only go to make the flight, but also takes care of requirements on ground.

Classical FBO

“A classical FBO as the world understands is basically a place where aircraft services such as ground handling, refuelling, servicing of aircraft, a terminal where passengers go through, terminals where the crew can relax, security and customs exist. Jet Aviation, ExecuJet Aviation, Strand Aviation, are some of the best examples of a full-fledged FBO. This is non-existent in India,” says Rohit Kapoor, Managing Director, Arrow Aircraft Sales and Charters Pvt Ltd. He is also the sales representative of Gulfstream in India.

A classical FBO or a full service FBO as seen in Europe or the US, handles all kinds of services right from sale of aviation fuel, line services for general aviation aircraft, air taxi and air charter operations, scheduled or non-scheduled air carrier services and support service, pilot training, aircraft rental and sightseeing, aircraft sales and service, aircraft storage (tiedown or hangar), repair and maintenance of aircraft, sale of aircraft parts, aerial photography, crop dusting/aerial application, aerial advertising and surveying, provides restroom facilities, communication access (telephone, Internet access, fax), and waiting areas, food vending/restaurant facilities, ground transportation arrangement, flight planning and weather information areas (computer or telephone based), pilot/crew rest lounges and showers, aviation supplies shop (selling navigation charts, manuals, or in-flight comfort items), access to in-flight catering, and accommodations reservations/concierge services for both crew and passengers through customer services representatives, etc. In many cases, they also operate flight training schools, provide aircraft repairs and maintenance, provide fuel and provide pilot support with weather and flight planning facilities.

However, a full service FBO seems to be a distant reality in India and all that can be found here is ‘limited use’ FBO. They are single service providers providing one or a few services. With regard to ground handling services, some of the airline operators prefer to do it themselves. When the Indira Gandhi International Airport (IGIA) made it compulsory for all general aviation operators to use ground handling services provided by Shaurya Aeronautics Private Limited (SAPL), they were up in arms. Airline operators have moved the courts for relief, stating that they could handle the services themselves as to distinguish their service from competition. Lately, Cambata Aviation is the official ground handler at IGIA as DIAL did not renew the contract of SAPL.

One other bone of contention has been pricing and airline operators state that ‘monopolistic’ trends lead to exorbitant pricing which is not good for the airlines which are already squeezed for margins. Airline operators have said that this decision militates with the spirit of Competition Act 2002. Some are rather comfortable if the airport operator enters into arrangements with more than one service provider to make available their services at competitive and attractive costs to the aircraft operators. “We have no choice. We are forced to avail the services, though they charge hefty amounts. If we had the option of choosing from two or three vendors, one particular service provider would not be able to dictate the rate and each would try to give their best,” opines Group Captain (Retd) A.K. Sachdev, Director Operations, Aviation Division, Oberoi Group.

But Sandeep Saraf of SAPL, the erstwhile FBO of IGIA, says to have such a kind of FBO in India is not feasible. “In India the concept is different.” However, he dismisses the issues confronting the airline operators with regard to ground handling, stating “all is well”. SAPL is now looking forward to bid for FBO service in other metros. Aircraft management is yet another aspect which the company will soon venture. “We are likely to start the service by August,” reveals Saraf.