Thursday, October 26, 2017

Companies monetise private jets to fly past turbulent times

New Delhi: India’s private jet set seems to have hit an air pocket as several businessmen in the country are now monetising their private jets to navigate through turbulent times. A list of companies from sectors such as infrastructure, real estate, hospitality and media have leased out their private jets to aggregators — who operate, maintain and rent them out — to earn money from these assets, industry insiders said.

GMR Group, Punj LloydBSE -1.13 %, Jaypee Group and Bhaskar Group are among companies that have rented out aircraft to aggregators over the past six to nine months, while Delhi NCR-based real estate companies DLF and Supertech have sold as well as returned the aircraft to the lessor. “Our aircraft was on lease and we have returned it to the lessor as we try to cut costs on various fronts,” Supertech managing director Mohit Arora said.

“We have also paid penalty that was part of the agreement with the lessor,” he told ET. GMR replied to the mail saying that they would not comment on the story. Emails and messages sent to all the other companies in the list did not elicit any response as of press time Wednesday.

Industry insiders said in most cases, bad financial condition is the primary reason for the decision to monetise private jets, though there are some exceptions, such as the Hero Group that has no apparent financial troubles but still rented out its private jet for extra resources.
26/10/17 Mihir Mishra/Economic Times

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