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Scheduled foreign carriers aren’t the only ones making a beeline to enter India. Foreign non-scheduled operators, too, are considering tapping the latent traffic potential in the country. The latest in the fray is Zurich-based business jet operator VistaJet Holding SA, which has initiated talks with the Indian government to start operations in the country.
Thomas Flohr, founder and chairman, VistaJet, said, “VistaJet will continue to increase international flights to and from India, as there is strong demand for these services. Once the company gains critical mass, we will move forward with offering domestic flight services within India, as was the case with Russia, Nigeria and China, where VistaJet has opened an office in Beijing. VistaJet is already engaged in discussions with the Indian government regarding the process to establish operations within the country.”
“Discussions (are on) on several levels regarding a local presence in India,” Flohr said, declining to share any details of the investment the company would need to commence general aviation services within India and the specifics of negotiations with local partners. According to Indian foreign direct investment norms, a foreign non-scheduled operator has to form a 74:26 partnership with a domestic partner to launch operations in India.
VistaJet has been operating international flights to and from India for the past 12-18 months and, at any given time, 10 per cent of its fleet of 41 aircraft are flying to or from India. Last year, it operated 150-200 flights to and from the country.
“The current status of air connectivity in India between urban and rural areas offers huge potential for VistaJet’s service. There are a number of factories and plants located in areas that are extremely difficult and, sometimes, impossible to reach by road/rail or scheduled airlines, which leaves a lot of scope for a service like ours,” Flohr said.
He added his company expected India and Indian clients around the world to account for 10 per cent of the company’s revenue. In India, the company is considering starting with three aircraft and, subsequently, adding to its fleet to meet increasing traffic volume.
According to data available with the Directorate General of Civil Aviation, India had 127 non-scheduled operators, with a fleet of 390 aircraft, as of June 2013. The general aviation industry in India is growing at 12 per cent (April-August 2013-14), one of the highest in the world, albeit on a low base.
The Indian scheduled airline market has also seen a lot of activity in the recent past with the government allowing foreign carriers to pick up to 49% stake in Indian airlines in September last year.
Post the relaxation in policy, West Asian carrier Etihad Airways has bought 24% stake in Jet and Tata Sons has inked two joint venture parrnerships with AirAsia and Singapore Airlines to set up greenfield airlines in the country.
