A business jet is no more a luxury

BANGALORE: Shamanur Shivashankarappa , chairman of Davanagere-based Shamanur Group, trusts his personal set of wings — Beechcraft King Air C90 — to hop in and out of his sugar factories in Karnataka. The 80-year-old patriarch swears by his aircraft that faithfully flies him from home to his sugar factory in Mudhol, near Bagalkot, a distance of 192km, in 30 minutes. “I prefer to fly from Davanagere to Belgaum and drive down to Mudhol. I save a lot of time,’’ he says.

It’s not just the swish set buying private jets. Like Shivashankarappa, many businessmen from tier-II cities are hopping aboard the plane-in-mybackyard bandwagon to better manage their far-flung operations. The business aviation market is already flush with buyers from the real estate sector, offshore gas exploration and mining companies.

India’s growing roster of high net worth individuals (HNIs) and demand from corporates are accelerating sales of business jets in the country. Sensing demand for flexible transportation, players like Embraer, Hawker Beechcraft, Gulfstream, Falcon and Bombardier are fighting for a pie of the country’s burgeoning business aviation market.

According to Centre for Asia Pacific Aviation (CAPA), the general aviation market comprising business jets, helicopters, turboprops and piston engines is expected to touch $12 billion in sales by 2020 with a fleet size of 2,000 aircraft from the current 680.

With rising bottomlines, corporates and HNIs are finding it easier than before to afford a business jet, said Amber Dubey, director (aerospace and defence ), at consulting firm KPMG.

FLYING HIGH
Centre for Asia Pacific Aviation (CAPA) says general aviation market expected to touch $12 billion in sales by year 2020.

With rising bottomlines, corporates and HNIs are finding it easier than before to afford a business jet. Business aircraft are no more a luxury, but a tool for increased productivity

Turboprops start from $5 million and go up to $100 million for a full-fledged business jet.

Desi entrepreneurs have booked themselves on a jet-setting flight . They have acquired private craft to cut travel time and focus more on their business .

Sudhakar Gande , director , Jupiter Aviation , says , “A business aircraftis no moreseen as a luxury , but a tool for increased productivity .Today ,we have a range of business jets starting from $5 million and going up to$100 million .”

As per the Directorate General of General Aviation ( DGCA), the general aviation fleet in India comprises 1,140 small aircraft and 300 helicopters . The business jet fleet is a relatively small component of this may be totalling 140jets.As India Inc is stepping up its global presence , there is a demand for long-haul business jets too .

The demand for Gulfstream G450 and G550 remains robust because of the rapid expansion of globalbusinessties , says Roger Sperry , regional senior vice-president of international sales for Gulfstream . The G550 can travel more than 12,000 kms nonstop and G450 can travel up to 8,056 km . Gulfstream’s fleet in India grew from a modest 5 aircraft in 2001 to 17 today .

Canada’s Bombardier expects todelier 325 new jets to India by 2020. Brazilian aircraft manufacturer Embraer has seen the demand for its aircraft growing the past two years . “We see great potential for our entry-level and light jets (Phenom 100 and Phenom 300 ).

We have secured sales for over 20 of the Phenom family of jets in India so far because of their trans-continental range . Overall , India is expected to receive $8.9 billion worth of executive jets over the next 10 years ,’’ says Jose Costas , VP for marketing & sales , Embraer Executive Jets.

To make business air travel affordable , Capt Gopinath promoted Deccan Charters along with Taj Air and BJNETS ,isoffering corporate membership under its Powerfly programme . Under Powerfly , companies can block flying hours and redeem jet miles even if they are flying abroad .

It works like a time share in the aviation sector . “Usually , many companies owning aircraft idle their assets , hence , the cost of ownership is high . But in a timeshare arrangement , you don’t have to own a jet or idle your assets . Just buy jet miles ,” explains Gopinath .