Page 29 - AAA MARCH - APRIL 2014 Online Magazine

FEATURE HOPE AMID GLOOME

Bombardier’s range of flagship
Global Express Jets: XRG,
5000, 7000 and 8000

favourable demographics and robust “Business jet sales should and lack of easy access to airspace and
economic growth, Mathur adds. progressively accelerate in India due to landing permits are hindering the growth
Located strategically between the economic growth and wealth creation,” of business aviation in India,” says Gp.
Middle East and Europe on one side and says airframer Bombardier. Capt. (Retd.) RK Bali, Secretary, Business
the East Asian economies on the other, As the forecast business jet Aircraft Operators Association (BAOA).
India’s geography indeed offers a lucrative penetration curve shows, fleet per 100 “The growth potential is definitely
opportunity for growth of general and million population is expected to grow there considering the huge population
non-scheduled aviation due to the rising from 12 to 120 over the next 20 years. India has, but we need to ensure that
demand from the ever-growing volume of “India is forecast to take delivery of policies are matched to the potential
high net-worth individuals and business 1,330 business jets by 2030, with 385 for full optimisation. It is not just the
houses in the country. aircraft by 2020 and 945 aircraft between increasing number of billionaires that will
More and more companies and 2021 and 2030,” Bombardier says. propel the growth, but the advancement
individuals are investing money to save In anticipation of the growing in regional connectivity will also play a
their business time and to increase opportunities in the general aviation big role. Business aviation would help in
productivity by owning a business jet. segment, small aircraft-makers like Cessna, providing 60%-70% regional connectivity
The majority of companies operate with a Gulfstream, Bombardier and Beechcraft are through code-sharing, which we are
single aircraft for their business purposes either setting up offices in the country or already negotiating with the civil aviation
in order to save the cost associated with expanding their existing businesses. ministry,” Bali says.
aircraft operations. “India is an important country for us According to BAOA the 25% import
According to estimates, Hawker as we feel this market is well-poised for tax for the corporate aircraft will increase
Beechcraft with 35 aircraft, Cessna extraordinary growth,” Richard Emery, cost and act as a roadblock in the
Aircraft Company with 31 aircraft and Beechcraft President, Asia Pacific, tells AAA. growth of corporate aviation. Further,
Bombardier with 24 aircraft dominate the involvement of too many agencies
the Indian private jet market. These three Business Not As Usual for licensing a private aircraft such as
companies together hold about 70% However, business aircraft operators the Ministry of Home Affairs, Ministry of
of the market share. Dassault Falcon, in India do not share the exuberance of Civil Aviation, and Directorate General
Gulfstream, Embraer, Airbus and Boeing Emery. Ballooning fuel bills, frail airport of Civil Aviation, Bureau of Civil Aviation
share the remainder 30% of the market. infrastructure, rising operational costs, Security and the Airport Authority of India
With the continued recovery of the regulatory knots and more recently, the lengthens the time for an aircraft to take
worldwide economy, leading indicators for tumbling rupee have hit the business to the skies.
business aviation are improving, resulting of about 200 non-scheduled airline The regulatory environment has made
in increased orders for new business jets operators in the country. it very difficult to buy and operate new
and much fewer cancellations. “Shortage of proper infrastructure aeroplanes in India.
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