While the fleet size of non-scheduled aircraft operators, often called the private jet operators, more than doubled in the past 10 years, their industry body — Business Aircraft Operators Association (BAOA) — says that business aviation in India remains much below its potential. In 2005, there were 197 business aircraft in India. In 2015, it was 487. But BAOA claims the sector charted a meager 2 per cent growth in the past five years as only nine aircraft were added on average every year during 2010 and 2015.
“Business aviation is no longer a corporate status symbol, but an imperative business tool needed by captains of industry and national leaders to grow in a highly competitive global business environment,” Jayant Nadkarni, president of BAOA, said in a statement. BAOA recently came out with a report on its operations in India along with knowledge partner Martin Consulting.
Through the report BAOA wants the government to rationalise custom duties and increase operational hours at smaller airports. It also wants online clearances to be enforced compared to a lot of paper work at the Directorate General of Civil Aviation. The wishlist does not end here. BAOA also wants the government to create a dedicated business jet terminal in Delhi and Mumbai.
What the private jet operators do not say is the negative impact of demonetisation on their business where cash changes hand at smaller airfields. Cash is often used for filling fuel or booking aircraft by business men, politicians or anyone who can afford the charges. According to some aviation experts, private charter companies have been badly hit by the demonetisation move. And that is the reason the DGCA had warned the private aircraft operators and their pilots against flying any demonetised currency notes to smaller airstrips where there are no arrangements for screening baggage. Of course news of smaller aircraft transporting demonetised currency to parts of North East India did not help their cause. After all only 75 out of India’s 450 airfields have scheduled commercial operations. Private jets fly to such airports without much security provisions.
As per the report, India had a total of 41 business aircraft in 1990 including helicopters. The number rose to 126 in 2000, 197 in 2005, 442 in 2010 and 487 in 2015. BAOA said it was upset that the new civil aviation policy left out the interests of business aviation, despite projections of the sector’s direct contribution to the gross domestic product to the tune of Rs 1,762 crore by 2030. However, Renu S. Parmar, senior adviser at the ministry of civil aviation, countered the view saying, “One gets a feeling that business aviation is a neglected sector, but I can assure you that it is not the case.”
BW Reporters
Ashish Sinha is an experienced business journalist who has covered FMCG, auto, infrastructure, tourism, telecom among several other beats. Ashish has keen interest in the regulatory scenario impacting different sectors. He writes on aviation, railways, post and telegraph, infrastructure, defence, media & entertainment, among a wide variety of other subjects.
