The Tata Group, through its hospitality arm The Indian Hotels Company Limited (IHCL), has invested an undisclosed sum in Singapore-based private jet operator, BJETS.
BJETS is majority-owned by the Briley Group, a multinational company with holdings in the aviation, hospitality, business process outsourcing, technology and service sectors.
IHCL, known for the Taj luxury brand of hotels, resorts and palaces, will have a significant stake in BJETS. When contacted, a Tata spokesperson said details of the shareholding pattern and investment could not be disclosed. In a media release on Tuesday, BJETS said it has ordered 40 Cessna and Hawker jets worth more than $600 million (Rs 2,400 crore), with options for 10 more. The delivery of the aircraft will be made over a period of five years beginning the first quarter of 2008.
?The first 15 new jets will be delivered by the end of 2008, setting a record-breaking milestone for BJETS. BJETS will have the biggest fleet of private jets in Asia in its very first year of operations,? the release said.
Currently, Club One Air is India?s first fractional ownership company and the largest non-scheduled air operator. BJETS is set to start flight operations in May out of Singapore?s Seletar Airport. In India, its flight operations will be based out of the new Hyderabad International Airport. However, the company will be headquartered in Mumbai.
BJETS will recruit and train over 550 new hires worldwide in the next five years, including more than 250 pilots. To work on the fractional ownership model, BJETS seeks to tap the Indian market for business jet travel. ?For the first time in Asia, BJETS will combine the best of the US and European models of fractional ownership, block charter and aircraft management services and provide a new benchmark for private aviation services,? says Bala Ramamoorthy, founder and MD, BJETS and CEO, Briley Group.
This partnership comes at time when the ASEAN-India Free Trade Agreement is expected to be signed in May this year, which in addition to trade, will boost air links between the two regions.