India's import taxes scupper Jupiter's PrivateAir ambitions

Plans to start a new Indian charter and fractional ownership company called PrivateAir have been temporarily shelved. Jupiter Aviation, the company's promoter, indicated at the AeroIndia air show in February that it planned to launch operations with five fixed-wing aircraft and two helicopters. But Ravi Narayanan, chief executive of both companies, says that the plan has been suspended due to high taxes on aircraft imports into India.
"The taxes increase the cost of by up to 30% and that's simply not feasible. It's not right that we are charged the same taxes as scheduled airlines. The charter or fractional ownership business is not viable due to the high barriers to entry," says Ravi.
"PrivateAir will not take off as a charter or fractional ownership company for now, though we will continue to monitor the market."
India's impressive economic growth over the last few years has led to growing demand for business jets, but operators of charter, management and fractional ownership companies say that there is a massive shortage of aircraft. High costs, restrictive rules governing the use of airspace and airports, and a shortage of proper infrastructure are also hindering the growth of the business aviation market.
Jupiter could buy two fixed-wing aircraft and two helicopters for its management and other divisions, which include maintenance, repair and overhaul and training.
22/05/07 Siva Govindasamy/Flight International

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Categories: General Aviation May 2007, New May 2007