It?s great to have a private jet, Oprah Winfrey said once. Yes, indeed. I have no doubt about it, especially after my recent trip in the Bombardier Challenger 300?the super-mid sized business jet?from the Canadian company.
The irony of being a business journalist is that while you do get to meet the honchos of corporate world quite often, it is very rare that you get to feel like one. My short trip between Delhi and Bhopal in the Challenger made me feel like a real VIP. The eight-seater aircraft with designer interiors, flat floor and stand-up height was far better than the executive class of the world?s best airlines. The noise-free cabins, music to suit your ears and the on demand wine and dining facilities, I realised why the big guns of the business world who claim to be travelling most of the time never complain about travel sickness.
The impact was so great that after the trip, the only thing I wanted to own in life was an aircraft of my own. I wish Oprah could help me.
That?s the magic flying on a business or a personal jet and that is what makes the job easier for the manufacturers of these planes. ?We do not have to do much marketing for these jets. All we do is to take people on board, after which they can?t resist buying,? says Nilesh Pattanayak, managing director of Bombardier Business Jets, south Asia in a lighter vein.
Today, owning a business jet is no big deal. Take any big business house, and it would have at least two business jets. And any company that does not have one is a potential customer for airplane manufacturers.
Global aircraft manufacturers have realised the potential of what seems to be a lucrative market, especially in India. Be it Bombardier, Gulfstream, Dassault and even Airbus, all these companies are betting big on India for selling their business jets.
The sales of business jets were affected to some extent by the depreciation in the rupee, and according to Pattanayak of Bombardier, the new orders had slowed down a little, but all that is changing now. ?Rupee depreciation has made our product much more expensive, so obviously it has affected sales. To deny that would be a lie. But the Indian economy looks strong and that is what would drive the demand for business jets,? he predicts optimistically.
Major companies supplying business jets in India
Bombardier
The Canadian manufacturer of commercial aircraft and business jets has forecast that in the next 20 years, 24,000 business jets worth $626 billion of revenue would be delivered worldwide. Of this, 10,000 deliveries worth $260 billion would be during 2011 to 2020, and 14,000 deliveries worth $366 billion from 2021 to 2030. The worldwide business jet fleet is expected to grow, at a CAGR of 3.8% over the forecast period, from 14,700 aircraft in 2010 to approximately 30,900 aircraft by 2030, net of retirements.
Says Nilesh Pattanayak, managing director of Bombardier Business Jets, south Asia, ?India and China would be the two biggest markets for business jets. It is not only in metros like Delhi, Mumbai, but even in smaller cities like Ahmedabad, Surat where we see a demand for business jets.?
The reason, he says, is economic growth. India is expected to be the world?s fastest growing region in the period from 2011 to 2030, with GDP growth averaging 7.5% per year. In 2011, India?s growth is predicted to be at 8.3%. Bombardier currently has a 30% market share for business jets in India. The company is aiming at a higher share in the next few years. It had an order for 15 jets from SpiceJet, of which seven have already been delivered and eight would be delivered this year.
?Aviation has become mainstream in India, and tier-II and tier-III cities are set to stimulate this growth. Strong GDP growth and growing corporate wealth are strong indicators of a strong market for business jets in India. For us, the Indian market is very bullish and we are here to stay,? he says.
Gulfstream
Part of the Virginia based, over $6-billion Aerospace Group, the company has also announced its plans for the Indian market. ?The Indian market has a vast long-term potential. There is demand for business jets, both from major corporates and high-networth individuals. We are here to expose our brand and expand our business. We are optimistic about India, as we are worldwide,? said Roger Sperry, regional senior vice-president (international sales), Gulfstream, at the recent Hyderabad aviation show.
The company has sold 2,000 jets worldwide, of which only 20 are flying in India.
Sperry said, ?Gulfstream has been part of the India market for more than two decades providing long-range transportation to India?s largest companies. We have been part of their global growth and have, indeed, facilitated that growth by enabling executives to move rapidly and easily from continent to continent.?
Dassault Aviation
With its Falcon family of large-cabin, long-range business jets, the company is also looking aggressively at India. ?While 80% of our business comes from the corporate sector and 10% from government worldwide, we are targeting only the MNCs in India. Several additional aircraft are on order for delivery to Indian customers over the next two years,? says Gilles Gautier, vice-president (sales and marketing), Dassault Aviation.
Dassault has sold 1,950 business jets so far and has a backlog of over 100 aircraft.
At present, there are about 20 Falcons operating from Delhi, Mumbai, Bangalore, Chennai, Pune and Hyderabad. The company has many new orders from the Indian customers to be delivered in the next two years. Most of its orders are for Dassault Falcon 7X?the first business jet certified with a fully-digital flight control system. Dassault produces the Rafale fighter jet as well as the complete line of Falcon business jets.
Airbus
The European aircraft manufacturer Airbus showcased the corporate jet version of its A318 airliner, the ACJ318, which boasts of the widest and tallest cabin, at the Hyderabad aviation show this year. ?The Airbus ACJ318 on display is operated by Abu Dhabi-based Al Jaber Aviation, which offers it for VVIP charters in a spacious and comfortable arrangement, with seating for 19,? the company said in a statement.
?Corporate jets such as the Airbus ACJ318 are primarily business tools that save time and enhance productivity, but are also an extension of the home and office facilities of company executives and world leaders, who want to take into the air what they have on the ground,? said Airbus CEO, Customers, John Leahy.
The ACJ318 is similar in size externally to traditional large-bizjets, but has a cabin that is about twice as wide, delivering a new league in comfort and space.
