Mumbai-based Flying Birds Aviation, a private charter company, has a total of four helicopters and six fixed wing small business jets. But the elections in Rajasthan, Madhya Pradesh and Chhattisgarh saw the company press into service a total of 12 choppers.
Ashish Kumar, CEO of the Mumbai-based company, who hired additional choppers from its corporate clientele, said that state elections are just the beginning before the real demand kicks in before 2024 general elections.
“People are ready to put the money down on the table now for a chopper they want to use in March. And within that, the demand for the twin-engine chopper is higher because people think it is safer. So, they are ready to pay a premium for that,” Kumar said.
Amit Dutta, managing director of Gurugram-based start-up company BLADE India, is busy fielding calls for chopper requests from political parties for the 5-10 helicopters it has. “We are inundated with requests for choppers on lease for elections and the market is running short on inventory,” Dutta said.
Election campaign to elect the members of 18th Lok Sabha is expected to kick off in early 2024 with Prime Minister Narendra Modi eyeing a third term in the office. Leaders of all parties will crisscross the country addressing multiple rallies. Since these rallies are also held in areas without an airstrip or an airport nearby, commuting by helicopter is the only available resort.
“In 2019, there was demand for 70-100 helicopters for 30-40 planes, but the supply was limited to only 45% and 75%, respectively, due to shortages. This year the demand has gone to 100-130 helicopters and 50-60 planes, however supply still is only 65% of it,” Kumar added.
The demand-supply mismatch has led to a surge in prices. From Rs 55,000-130,000 per hour seen during the 2019 general elections, the cost of chartering a helicopter now has shot up by 3-4 times to Rs 200,000-350,000 per hour depending on the aircraft type. This excludes other costs such as, flying required from the city of origin of the chopper, airport charges, and airport handling chargers, fuel transportation, accommodation, food and transportation for the crew.
India has an estimated 155 helicopters and one-third of that is possessed by the state-owned Pawan Hans from whom oil companies use them for their operations. Around 36 other companies, many of them being large multinationals, control the balance inventory.
“There are 9-10 legal charter companies in India but during the times of astronomical demand, corporates lend choppers from their fleet,” Kumar added.
No wonder, companies like BLADE India are in the process of expanding their fleet. BLADE India is inducting at least 5 more helicopters before the 2024 elections. The company has set up a subsidiary in Gujarat’s GIFT City for aircraft leasing with the first helicopter set to get inducted in January end.
“We are placing orders for more than 10 aircraft. Elections are seasonal short-term opportunities. Most business people will look at best revenue opportunities and deploy their fleet,” Dutta added.
Another private charter company Jet Set Go said that the challenge of covering the most extensive territory in the shortest time is paramount, and in this race against the clock, there is no transportation that can rival private choppers, as they possess the unparalleled ability to reach and land in the remotest of locations.
