Private flying was once considered a niche reserved for the ultra-rich, but the perception is slowly changing. Today, the private flying market is catered to by over 700 aircraft?including over 165 jets with the capabilities to fly international?which fly close to 48,000 domestic hours and 8,000 international hours annually, according to Rajeev Wadhwa, CEO & chairman, Baron Luxury and Lifestyles Pvt Ltd.
?The general aviation market in India is currently rebounding from the 2008 US sub-prime crisis, though the exact revival point is expected around 2015?, says Wadhwa.
?During 2008, it was estimated by the big three consultancies and CAPA that the private flying industry would garner $16 billion worth of inventory, including private jest and helicopters, in between 2008 and 2018. This included close to 450 helicopters and 300 jets orders. However, it is highly unlikely that these figures will be achieved?, he says.
?The tanking of the rupee against the dollar and the uncertain political climate have stalled several aircraft orders. But 2015 is expected to bring some sort of stability as the upcoming general election would indicate the next government and its economic policies?, he adds.
Baron, which entered the general aviation and charter flying market in April 2011, has a fleet of 27 aircraft comprising helicopters, single engine aircraft and jets. It flew close to 4,500 domestic hours and 500 international hours in 2013, according to Wadha. The company filing with the registrar of companies shows it made a loss of 2.13 crore on a revenue of 14.16 crore during 2012-13.
The company?s clients are mostly spread across four segments?celebrities, politicians, businessmen and luxury fliers.
?There are more than 50 A grade movies that are released every year, which have multi-city promotions. We cater to them. We also service actors who visit different parts of the country for stage shows?, Wadhwa said. ?Then there are the politicians.?
But election flying is also one of the most difficult periods for private charter companies. ?There are several aspects to be taken care of. For instance, helicopters require permissions to land at unscheduled places like school compounds or fields. With politicians visiting several venues a day, moving fuel by road becomes a challenge as it requires a host of safety measures like having an ambulance and fire brigade tagged along the container,? he said.
The company is also keen to enter other spaces within the aviation and hospitality sector. One plan is to set up its own customised holiday plans for billionaires?providing them with private jets and property at their preferred holiday destinations. ?We are looking to enter this market in 2015?, Wadhwa said.
At present a large part of Baron?s domestic portfolio consists of charter flights connecting major metros though it has permissions to land at over 160 airports across the country.
?The future plan is to expand our business in the non-metro segment and go public in the next four-five years,? Wadhwa added.