Constrained by red tape and high taxes, business aviation in India is no cakewalk. However, most operators are optimistic. This, after all, is a sunrise sector.

A chilly wind is blowing Across the indian Economy and the aviation industry is just about the worst hit. With all domestic carriers notching up huge losses there seems to be no prospect of the much awaited turnaround any time soon. On the contrary, travellers’ associations regularly complain about the sharp and frequent increase of ticket prices. Yet aviation experts believe current airfares are still around 20 per cent below cost. According to the International Air Transport Association, perfect storm conditions of high prices and falling demand are likely to prevail for a while. Various overheads such as fuel, salaries, maintenance, ground handling charges and catering costs, are rising. Make no mistake, the current operating cost structure is unsustainable. The Indian airline industry is in serious trouble and finding a way out is likely to be a daunting task.

Business Aviation in India
If some of the scheduled airlines are teetering on the verge of collapse in this adverse economic environment, how is the business aviation segment faring? In India, strangely enough, there is no clear division between scheduled commercial aviation and general aviation, which includes business and private aviation. It is widely acknowledged that general aviation is a badly neglected sector. Despite the completely different operating paradigms, it does not even have separate rules and regulations. In countries with developed aviation sectors, Fixed Base Operators or Fixed Base of Operations servicing centres are taken for granted. Here they are non-existent. Similarly, general aviation terminals and heliports are vital for the sector to grow. Instead, business and private aircraft are forced to compete with scheduled commercial flights. When it comes to maintenance facilities, business aviation is once again badly off. The very first dedicated terminal for business and private aircraft is expected in Delhi, perhaps by 2009-end.