The Tata group?s investment in the Singapore-based private jet operator BJETS signals bright blue skies ahead for business aviation, one of the fastest growing niches in the global field of air services. Globally, this sector is poised for an unprecedented boom. Large and small companies are expected to take delivery of around 24,000 new business aircraft over the next two decades, with the Asia-Pacific region emerging as the third largest market. So far, India has been unable to participate in this phenomenon on account of a variety of reasons like lack of infrastructure, excessive red tape and policy conservatism vis-?-vis flying. Corporate jets in India remain a rare privilege, even as their usage becomes routine in other parts of Asia. Demand for private jets, though, is soaring. Over the next two years, India is projected to add one business jet every third day to the existing fleet. Corporate groups and high networth individuals have filed more than 300 applications for general aviation licences in India. These would allow a wide variety of civil aviation operations other than running scheduled and non-scheduled flights, like flying for business purposes, assisting agricultural processes, law-enforcement, traffic control, ambulance services, aerial surveys, search-and-rescue operations and recreation. In a few short years, the number of privately operated flights could skyrocket, as people go about using aircraft of assorted kinds to achieve myriad objectives?as is common in the US.
Additional airstrips and other infrastructure to support such a general aviation revolution would have to be put in place quickly. Of course, while India is home to many dynamic executives on the go, we cannot expect the country to be dotted with private hangars with shiny little jets anytime soon. Sharing arrangements will dominate business aviation, with several models in use, including fractional or part ownership and block charters. Though the fractional ownership model is still in its infancy, with only about 6% of the global business aircraft fleet using it, the potential is large. The government?s efforts to liberalise FDI in the Indian aviation sector have contributed to the confidence of investors in such projects. But this sector?s smooth take-off could depend on local clearances. It?s time to snip red tape.
