April 29, 2011: While everyone’s eyes were glued to articles relating the India-Pakistan World Cup semifinal match in Mohali this spring, they may have missed the news that came on March 31, the day after the match had ended: "76 private jets and charters land in Chandigarh."
Big players in Indian industry have taken to private jet travel as a primary means of transportation in recent years. With continued economic growth feeding their companies, industrialists’ glamourous private jet travel displays both success and excess. For example, both of Reliance Industries’ infamous Ambani brothers owns multiple planes: Mukesh owns three planes: two Bombardier Global 5000 jets and an ACJ 319, while Anil has one Bombardier Global 5000 and a Dassault Falcon 2000. Businessman and passenger airline tycoon Vijay Mallya of UB Group also owns two jets: an ACJ 319 and an Airbus 133.
Gautam Singhania, Chairman and Managing Director of Raymond, said that private jets allow company heads to travel when they are short of time and allows them to land in areas that are not equipped to receive commercial flights. He added that this saves people like him a great deal of time and effort.
Singhania was among the fleet of the elite arriving at Chandigarh to support Team India at Mohali. He arrived in his nineseater Challenger 604, which he had also taken to previous matches in South Africa and Australia.
Air traffic controllers at Chandigarh, who weren’t used to high air traffic, had a hectic time dealing with all of the private jets coming in on March 30. These planes had to drop off their high-profile passengers and then promptly fly 250 km away to Delhi for parking. Since Chandigarh only handles 22 to 26 flights on normal days, the airport only has three parking bays.
The newly-deemed international airport at Chandigarh saw the arrival of every variety of private jet transport, from the under-$5 million second-hand Beechcraft Turboprops of little known and aspiring tycoons to the $60-million (Rs 270-crore) Airbus Corporate Jets of Mukesh Ambani and Vijay Mallya.
Aviation analyst Rajan Mehra said that business use of private planes and helicopters is increasing because companies are both making money and saving money. Economic recovery and increased profits have allowed for jet purchases while the travel itself involves less hassle and overall cost.
India’s fast-growing private jets market in India represents 12 percent of the global market. This is a bigger share than those of China and Japan. According to research & consulting firm Frost & Sullivan, China has a total of 93 private jets and Japan has 76. Meanwhile India has 142, making it the country with the most private jets in all of Asia. India’s private jet ownership is expected to double by 2021, say manufacturers and analysts.
This expected growth has global manufacturers of private jets, including Gulfstream, Bombardier and Embraer are all marketing aggressively on the subcontinent. Bombardier of Canada is the company that has experienced the greatest amount of success in India ,having sold 24 jets ranging from small Learjets and mid-size Challengers to bigger, long-distance Global business jets.
Bombardier’s forecast for India's business jet fleet is stronger than the average predicted by manufacturers and analysts. According to a company report, India will have 440 company aircraft by 2019. That is a 300% increase in just 8 years. Nilesh Pattanayak, Managing Director for Business Aircraft’s South Asia division says that his company expects to deliver 325 aircraft in India by 2021.
Gulfstream is gaining ground in India's long range business jet market, with their jets accounting for about 40 percent of current sales. Jason Akovenko, Vice President of Asia-Pacific Region at Gulfstream Aerospace Corp., credits the expanding interests of Indian businessmen for his company’s success in the region. According to Akovenko, the number of Gulfstream jets in India increased from five in 2001 to 21 in early 2011.
Meanwhile, Brazilian jet manufacturer Embraer hopes to take their current number of three jets in India up to 20 in the next two years and has set 2018 as a target date for obtaining $1 billion, or Rs 4,500 crore, from sales in India.
Although jet makers will not publicly name their target customers, India’s super rich are certainly at the top of their lists. According to the Wealth Report, an annual publication of Citi Private Bank in partnership with luxury property firm Knight Frank, India’s emerging millionaires and billionaires will be generating the greatest amount of demand for private jets over the next five years.
Charter flights are an option for those who do not yet have the funds to purchase a private jet. This business is seeing huge increases, says Sanjay Godhwani, CEO and Managing Director of Religare Voyages, a Delhi based air charter service provider. According to Godhwani, the air charter business is growing at 70 percent and Religare Voyages expects to increase its current number of 12 aircraft and helicopters to a total of to 20 in two years. This Rs 1,200-crore firm’s client base presently includes over 500 companies, each booking 400 to 600 hours of flight time annually.
India’s other big charter companies include Air Charters India, Private Jet Charter, and Taj Air from the Tata Group. These companies offer a way to avoid the inconveniences of travel by commercial flights, offering prompt and hassle-free charter services to destinations outnumbering those served by commercial carriers.
The costs of keeping a private jet close at hand can be expensive as well. Owners must purchase fuel, aircraft insurance, parts and salaries for qualified operation and maintenance staff. They must also ensure that their planes meet or exceed all national and global safety standards. Furthermore, as seen in Chandigarh, they must arrange for parking their jets, something which can only be done at large metro airports like Delhi, Mumbai and Bangalore. Even here there is difficulty, as commercial operations at these airports are increasing and making parking space scarce.
Landing charges vary between Rs 436 for very light jets Rs 14,000 for heavy ones. Charges for lading and parking depend on a number of factors, including the aircraft's weight, landing time and duration of use of parking facilities and number of seats. Charges also vary from one airport to the next.
Bombardier's Pattanayak mentions even further necessary expenditure and hassle for private jet owners, saying that they must consider not only meeting tough government standards, but also long governmental procedures and a need for more aviation infrastructure in the country, as well as duty and taxes.
So far, these costs and hassles have not kept India’s top earners from purchasing private jets and only serve as a minor irritation before gaining the ability to enjoy convenient luxury travel.