Business jet firms see no slowdown

Mumbai: The boom in the Indian economy over the past few years resulted in several players entering into what was seen as one of the largest untapped business aviation markets in the world.
A few months into 2008 and after the fall of a few top financial institutions, are these firms still bullish on the corporate aviation scene in the country?
Surprisingly, they seem to be. Companies like BJets or Airnetz are neither ready to cut their fees nor cut back on expansion. Mark Baier, chief executive officer of the Tata-backed BJets, says that, while certain sectors might feel the effects of the downturn, it would not be an across-the-board phenomenon.
BJets has committed billions of dollars for its expansion in India and south-east Asia, with orders for 40 aircraft. The company currently has 4 aircrafts and is looking at doubling the number by the end of the year. The recently-launched BJets provides fractional and block charters to corporates as well as individuals. Fractional ownership is a market which had only seen the Manav Singh-promoted Club One Air.
Airnetz Aviation, a relatively new player with a low cost model, is seeking to attract small businesses to the world of corporate jets. Ritesh Kakkad, co-founder, feels that any slowdown would affect scheduled airlines more as the travel of mid- and lower-level managers could be cut while the CEOs would travel more in search of opportunities.
According to an analyst with a brokerage firm, the one major reason for this optimism is the lack of penetration of business aviation in India. The under-supply, built over the years, means that it is the pent up demand that is being catered to. Over the next few years, Asia is expected to contribute significantly to the total number of business jet deliveries. According to accounting firm Ernst & Young, the current market size of general aviation is estimated at $80 million, which is expected to grow by 50% over the next three years.
08/10/08 Nirmal John/Daily News & Analysis

To Read the News in full at Source, Click the Headline

Categories: Indian Aviation- In General Oct 2008