Mid-tier firms in small towns buy aircraft to save time and improve efficiency

New Delhi: Doing business from Bhopal has its challenges. Ask RC Agarwal, chairman of the 1,700-crore Dainik Bhaskar Group. Over the past few years, the diversified group, with presence in media, FMCG and textiles, has spread its business from five to 13 states. The business now requires the top management to travel frequently to tier-II cities such as Jaipur, Ranchi, Aurangabad and Chandigarh.
This was not easy since connectivity to mid-tier cities is poor. So, the Agarwals had to travel to Delhi or Mumbai first to hop onto a flight to any of these smaller cities. This meant wasting an entire day shuttling between airports for a two-hour meeting.
Things have changed since last year when they bought a new Learjet 60 for 50 crore. "Now it is possible for managers to leave at 9 am, finish meetings and be back in Bhopal by 4-5 pm," says RK Pal, aviation head, Bhaskar Group.
With growing revenues, spreading business empire and surging aspirations - all this at a frenetic pace - India Inc is now budgeting to buy private aircraft to ease pressure and save time for the senior management.
The demand is strong from mid-tier firms in relatively remote places such as Aurangabad, Coimbatore, Tirupur, Surat and Lucknow.
13/08/11 Malini Goyal/Economic Times

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Categories: Indian Aviation- In General Aug 2011, New Aug 2011