Indiabulls enters chartered aviation services

After financial services, broking, real estate, retail and power ventures, Indiabulls has entered the aviation sector. The $7.5-billion company launched chartered aviation services this month.

Apart from flying its own executives, the group has started leasing aircraft. The group will import a 60-seater Bombardier Global 5000, which will be delivered in one-and-a-half years, according to company sources.

The aircraft costs nearly $45 million (nearly Rs 180 crore). The company owns a 12-seater Challenger 604 and a seven-seater Cessna Citation Bravo under the fixed wing operations.

Indiabulls has formed a subsidiary, Airmid Aviation Services, for the chartered service operations. Airmid has obtained a non-scheduled operator licence from the Director General of Civil Aviation. The company is planning both long- and short-haul operations.

The company has two EC 135 helicopters manufactured by Eurocopter and has outsourced maintenance and servicing of the aircraft to Khambata Services.

"We are looking at 600-700 chartered hours per year under the fixed wing operations," said a company executive.

According to estimates, chartering for an hour costs Rs 3.25 lakh for a user and has 50 per cent gross profit margin.

According to sources, Indiabulls may also buy a 200-foot yacht for the company's operations.

Ajith Mittal, president, corporate affairs, Indiabulls, said, "We have real estate and SEZs across the country. Apart from flying our own executives, we can lease the aircraft. It would be a self-sustaining model," Mittal said.

Indiabulls, promoted by Sameer Gehlot and others, had demerged its real estate business in February 2007 and subsequently listed it as a separate entity called Indiabulls Real Estate (IBREL).

Currently, IBREL is executing seven real estate projects, three SEZs and two commercial projects. IBREL is also bidding for a number of projects, including the Rs 10,000 crore Dharavi Redevelopment Project and the land to be auctioned by the Railway Land Development Authority.

IBREL has announced a public issue of its property trust on the Singapore Stock Exchange. Billionaire Lakshmi Mittal and Farallon Capital invested Rs 1,580 crore in the power arm of Indiabulls recently.

IBREL has also floated a retail arm, Indiabulls Wholesale Services, to set up 30 malls with an initial investment of Rs 1,500 crore. Indiabulls has also acquired Pyramid Retail owned by the Ashok Piramal group.

Nearly 32 companies run charter air service in the country, including Deccan Aviation, ClubOne Air, Tharneja Aerospace, and the Oberoi group.

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EYEING SKY PIE

Indiabulls has formed a subsidiary, Airmid Aviation Services, for the chartered service operations

The $7.5- billion company will import a 60-seater Bombardier Global 5000

The company owns a 12-seater Challenger 604 and a seven-seater Cessna Citation Bravo

Apart from flying its own executives, the company plans to lease the aircraft