India Inc places orders for 100 executive jets

DLF group, TVS Motors, GMR Group and Videocon are all set to join the jet set.

The number of corporate jets in the country is expected to double to 300 in the next 18 months as they become the next status symbol for India Inc.

Real estate major DLF group, TVS Motors, power and airport major GMR Group and consumer durables giant Videocon have all received permission to buy or lease corporate jets.

Others like Reliance Industries, the UB Group and the Raymonds group, which already have corporate jets, are adding to their fleets.

According to civil aviation ministry sources, in the last five months the government has given approvals for about 30 companies to import about 100 aircraft.

The cost of the new machines range from $5 million for a single engine aircraft to a staggering $50 million for a high-end Gulfstream. If you are willing to pay, you can get a personal bedroom, office space, modern communication facilities and even jacuzzis.

Of the new aircraft, 100 will be smaller jets, which include Gulfstream, Beechcraft, Falcon, Airbus and Boeing corporate jets. Helicopters from Bell and at least 12 jets that fly trans-Atlantic non-stop have also been ordered.

Videocon has bought a Beech King Air 350, DLF a Gulfstream and a Sikorsky S-92, TVS Motors a Beechcraft Superking Air B-200 and Reliance Industries an Airbus A319 CJ, a new Falcon 900EX and a Global Express XRS, to name a few.

The demand is so huge that some jet makers like Gulfstream are looking at setting up maintenance facilities in India to serve the growing corporate clientele.

Sensing a burgeoning market, commercial airlines like Air Deccan, Kingfisher and Jet Airways are also looking at starting corporate charter airlines.

"People have realised that an aircraft is no longer a toy for the rich but a business tool," said Karan Singh, chief executive, IndoPacific Aviation, a company that deals in leasing and buying aircraft for corporate and high net worth individuals.

But experts said buying a jet could be cheaper than chartering planes in the long run. The hourly flying cost of a jet is about Rs 35,000 to Rs 200,000 against Rs 50, 000 to Rs 350,000 for a chartered aircraft.

Aviation industry sources said companies operating in the mining belt "" Bihar, Madhya Pradesh and Jharkhand "" had also sought permission to acquire and import about 50 helicopters.

According to Manav Singh, managing director, ClubOne Air, a company that allows individuals and companies to jointly own aircraft, the major demand is coming from companies with operations in various parts of the country.

"Companies operating in sectors like oil and gas, retail, manufacturing, farming, mining and construction are some of the major demand drivers," Singh said.