|
The term “business aviation” refers to sleek
corporate jets and the Fortune 500 companies that
use them, is a misperception. The majority of
business aviation users are the employees and
owners of small and mid-size businesses.
Business aviation is the resolve of the industry
to make operations easier in agriculture, emergency
medical services, scientific research and security
and law enforcement. Experts say the main reason
for the rise in demand is that a business aircraft
is no more seen as a luxury but a tool for increased
productivity. Private or business jets allow business
leaders to use their time more productively.
In India business aircraft have continuously
evolved to meet the increasing market demands
for speed and comfort and the selling prices have
increased just as rapidly. With the number of
billionaires and high net worth individuals in
India growing, business jet makers are intensifying
efforts to sell their aircraft in India which
industry sources say will need over 250 aircraft
in the next 10 years.
The mammoth task ahead for the sector requires
the unstinting support and collaboration of the
policy makers and the collective will of multi
stakeholders committed to making India the regional
hub for providing world class aviation services
in Asia.
Indian Bus ines s Aviation Expo (IBAE) explored
the latest developments in the business aviation
sector of India as well as prospects and challenges
for the future. It is where business aviation’s
top vendors, industry leaders and experts from
around the world came together with the emerging
Asian market that is eager for information and
products that can assist them as they continue
to grow into a strong economic leader.
“Business aviation gets the stepchild treatment
to civil aviation,” said Capt Karan Singh, Vice-President
of Business Aviation Association of India (BAAI).
From basic issues such as policy changing, fuel
tax, to infrastructure and regulations, the requirement
for business aviation and aircraft in India is
demanding recognition from the Indian government.
He emphasized that fixed base operations are the
need of the hour and the government should look
seriously into it.
IBAE set the agenda for the business aviation
market to set a common goal to lobby Government
and the regulatory authorities for due attention
to this growing sector.
This first event was aimed at operators, government,
industry associations, lawyers, financial and
funding institutions, infrastructure planners
and providers, pilot groups, MROs, FBOs, OEMs
and the full supply and service sector. Operators,
government, industry associations, lawyers, financial
and funding institutions, IT and software support,
infrastructure planners and providers, pilot groups,
insurers, MROs, FBOs, OEMs. And aviation trainers
participated at the global forum and gained insights
into ideal regulatory policies and business solutions
for the benefit of the industry.
The role of the Indian Business Aviation Expo
was to set the agenda for the emerging business
and general aviation sector in India. The event
spread over three days provided an appropriate
platform for synergy between professionals from
different sub sectors of the industry and deliberated
on the potential of the business aviation sector
in India. A large gathering of over 150 delegates
from the business aviation industry attended the
event.
India is one of the fastest growing aviation
markets in the world. With the liberalization
of the Indian aviation sector, the industry had
witnessed a transformation with the entry of the
privately owned full service airlines and low
cost carriers.
“Corporate aviation is a significant business
tool to enable quicker access to corporate customers,”
expressed Prem Behl, Chairman, Exhibitions India
Group during his opening remarks at IBAE 2010.
He added that it was all ready to take off and
land smoothly.
National Business Aviation Association of USA
stated that the major advantages are sometimes
considered to be convenience and cost. Statistical
studies indicate that business jets generally
are more cost effective than commercial services
even when there are commercial services available
between the cities involved. Using business aircraft
saves four hours travel time and 8 hours productive
time per trip. Business aircraft saves hotel bills
and overnight time away from home.
The typical business jet trip saves $1,400 in
direct costs, airfare, salary, expenses, and $7,600
per trip, giving value to the value of the individual(s)
to the company. As a benefit to some executives,
smoking is allowed on business jets. The companies
state they are able to purify the air and eliminate
any odor between flights, states NBAA.
Business jets can land at about 5,500 United
States Airports versus about 500 for commercial
service. You may need a second jet to take company
personnel to two different places at the same
time. About 25 per cent of corporate jets are
owned by individuals who want or need a jet for
personal and family travel as well.
Imagine travelling in your own jet aircraft without
actually owning it! Fractional Jet Ownership is
another topic which prominently figured in the
expo and attracted a lot of attention. A company
or individual buys, or leases, a fractional interest
in one aircraft just as they might acquire a partial
interest in one condo unit.
They can use their own aircraft or another similar
or identical aircraft a certain number of hours
or days per year just as a condo owner can use
the condo a specified number of days or weeks
per year. In most programs, if your 1/8 interest
aircraft is not available when you want it, you
can have access to a larger pool of identical
or similar 1/8 interest aircraft fractionally
owned or leased by others. This concept is expressed
in the logo.
You can sometimes buy or lease a 1/16th interest
which would include 50 hours, or a 1/4th interest
which would include 200 hours. A 1/16th interest
in a Citation Ultra has been quoted at a cost
of approximately $80,000, and a 1/4th interest
in the new Boeing Business Jet at $11,000,000.
Each deal is separately negotiated and some have
buyback or the fractional interest buyer or lessor
will get a “turnkey” operation of aircraft, crews,
scheduling, and maintenance on demand.
Tata Group entered the space to start aircraft
charter and fractional ownership programmes in
the country and picked up a stake in BJETS - a
Singapore- and Mumbai-based personal aviation
provider in 2008. But Capt Karan Singh of BAAI
was sceptic about the success of fractional ownership
in India.
Prasant Sukul, Joint Secretary, Ministry of Civil
Aviation said,” Business Aviation of India (BAAI)
should list out the issues impacting services
provided by the operators, for discussions with
the ministry. With points noted, and observations
made, IBAE graced the occasion and aimed to bring
attention to business aviation in India with the
proper support of private and bureaucratic means.
“ With expositions and trade fairs and organisations
tailored for this branch to educate the public,
a movement has begun, said Kapil Kaul, CEO, Centre
for Asia Pacific Aviation (CAPA). “The sector
needs more coordination from all the stakeholders,
to really take advantage of the enormous growth
potential that the Indian market has,” he added.
MRO - Trends and Strategies, IT Solutions to
address challenges in MRO, status of helicopter
industry In India, aviation industry’s growth
in India, infrastructure development and role
of government bodies like DGCA, Airport Authority
of India and Ministry of Civil Aviation were some
other topics discussed in the expo.
|
