Private aviation on boom in India

The total number of private aircraft in the country today stands at 650 and is expected to soar to 2,000 by 2020. In 2003, the number stood at 350. About 40-50 % of the demand is coming from small towns, says Rohit Kapur, MD, Arrow Aircraft, which sells Gulfstream in India.
Kapur is also the president of Business Aircraft Operators Association. "With poor roads, poorer connectivity and spread of businesses to interiors of India and overseas , there is a strong demand," he adds. It is estimated that 40% of the private aircraft being bought in India are brand new and the rest are used.
Recently, Airworks - a firm that helps corporates buy and maintain aircraft - got an invite from auto vendors in Aurangabad to make a presentation. At the end of the session , the company had received 100 confirmed enquiries.
"Private aviation in India is going to boom, long-term. Nothing is going to stop it," says Todd Hattaway, regional sales director(India), Hawker Beechcraft. Today, there are 99 orders in the pipeline for private aircraft . A large number of them are from midtier companies.
Three factors are fuelling demand. For entrepreneurs from small towns, it is about business productivity as air connectivity there has not kept pace with their ambitions.
Two, many Indian companies are spreading their business overseas - from Africa to eastern Europe, where direct connectivity is poor.
Three, India Inc has grown in size and can afford to buy aircraft, especially since they enhance productivity. Add to this growing demand from the government, especially state governments, which have become stronger and feel the need to stay connected to even remote regions. Also pushing up demand are MNC bosses, lawyers and doctors flying to far-flung areas to meet clients.
13/08/11 Economic Times

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Categories: Indian Aviation- In General Aug 2011