Oil doesn't worry the Indian private jet industry

New Delhi: High-fliers seem to be inflation proof. Even as airlines are struggling to restrict ever-rising losses, primarily due to rise in aviation turbine fuel (ATF) prices, the Indian private jet industry is charting out a new flight path.
According to industry sources, India Inc has already bought seven private jets in the last three months. The recent proud owner is infrastructure major, GMR group, which has purchased two Hawker Beechcraft 750 for a cool sum of around $30-million. With at least 45 deliveries likely this year, the private jet industry appears to be least bothered about the increase in the price of aviation turbine fuel (ATF).
Nigel A Harwood, CEO of InterGlobe General Aviation, exclusive representative of Hawker Beechcraft Corporation (HBC), remains tight-lipped on the recent sales. He, however, told SundayET that there has been no slowdown in the sales and purchase of private jets. “It’s undeniable that customers are taking a little more time but there hasn’t been any mark-effect. Since the start of this year, we’ve already sold 10 aircraft,” said Mr Harwood.
Analysts feel that the private jet industry is insulated against rise in the fuel prices as it constitutes only a small portion of the total costs involved. “Those who’re spending around $30-40 million for a private jet won’t be affected with the rise in ATF prices. Though we haven’t started our business operations, there have been a number of requests from prospective buyers,” said a BJets official. The Singapore-based company will be offering fractional ownership of aircraft besides a prepaid block charter for 25 hours.
Bird Group, which has signed an agreement with Regourd Aviation, a global professional aircraft dealer and broker specialising in the sale of business jets and helicopters, is also bullish on its sales plans.
22/06/08 Dheeraj Tiwari/Economic Times

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Categories: Indian Aviation- In General Jun 2008