Tatas float business jet firm with Singapore co

After low-cost carrier SpiceJet, the Tata group is making its second investment in aviation with group company Indian Hotels Company Ltd investing 36 to 37 per cent, according to sources, in a newly-floated company, BJETS, in partnership with Singapore-based Briley Group.

Slated to start operations in May 2008, Mumbai-based BJETS will specialise in fractional ownership deals for business jets "" meaning each of its jets will be part-owned by individuals who are also entitled to fixed flying time -- and aircraft management.

Briley, with interests in aviation, hospitality and BPO around the globe, will be the majority owner in the company.

As part of its ambitious drive to be Asia's largest business jet operator, the newly-floated company has also signed the single biggest order in Asia for a fleet of 50 new jets worth over $600 million (Rs 2,400 crore).

Aircraft deliveries will take place over five years beginning in the first quarter of 2008 comprising 20 Cessna Citation CJ2+ jets and 20 Hawker 850XP and 900XP jets with options for 10 more.

Apart from Mumbai, the company will operate out of Seletar airport in Singapore and have a flight operations centre in the new Hyderabad International Airport at Shamsabad.

"Seventy per cent of the fleet will be stationed in India, the rest in south east Asia and our aircraft will be able to fly at least 120 airports in India," said Mark Pierre, CEO of BJETS.

"The market in India is under-served with only 100 jets compared to 13,000 to 14,000 each in Europe and the US," he added.

Pierre expects the company to record a turnover of around $600 million in its fifth year of operation. The company plans to recruit and train over 550 new people worldwide in the next five years, including more than 250 pilots.

The company will offer customers three options. One is fractional ownership in the fleet that assures flying time 365 days a year. The second is a pre-paid card of 25 hours of flying without ownership. Third, the company can manage aircraft for others.

"BJETS will set a new standard in the way we fly and do business in Asia," said R K Krishna Kumar, vice-chairman of the Tata Group.

The Centre for Asia Pacific Aviation (CAPA) estimates that there is a market for over 1,000 private jets by 2020.

"There is a huge gap for private jets in India and south east Asia, unlike in Europe and the US, where the market is saturated. I see the Tatas playing a key role in the regional aviation space," said Kapil Kaul, CAPA's CEO in India.