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Business sentiments running high should mean good days for private jet operators in India. But, the country's lack of infrastructure and policy paralysis have stymied the sector's growth, say operators.
The government is yet to evolve a policy framework for non-scheduled air operations. It means the private jet operators are governed by the same regulations of scheduled operators. "This poses a load on us," says Bhupesh Joshi, CEO of Club One Air, one of the largest players in the market.
Joshi cites the regulatory requirement for a co-pilot to fly 100 hours to become captain. "The scheduled carriers have volumes and it's easy for them to meet the regulatory requirements. But, it will take six months for our pilots to have even 10 hours of flying," he says.
India's private jet fleet grew at double-digit rates until 2008, when it surged 26 per cent, according to industry figures. But, that proved to be a flash in a pan.
After that, there was a sharp slowdown owing to the global financial crisis. High taxes ensured the numbers did not climb back. Since then, there have been some uptick in the number of operators. But, with every new set of operators coming in, some operators went out of business.
For the past three years, the number of chartered operators as well as aircraft has plateaued. The years of double-digit growth went into single digit in 2010 and slipped into the negative territory in 2013. The inventory or number of aircraft owned by chartered operators has remained stagnant at 200 since 2013. This is despite the fact that the economy has recovered and business prospects looked brighter.
According to an executive with a charter company, the government has never thought of building infrastructure for business jets. "India has gone berserk building airports to support the growing numbers of Boeing 737s and Airbus A320s operated by Indian carriers for the passenger sector - to fuel the growing middle class - but they haven't really gone to town in building up business jet facilities to the same degree that they have for commercial aircraft."
Stressed out by infrastructural constraints, the availability of airport slots is another key issue that has compounded the woes of chartered operators. The Delhi airport has reduced the number of slots for such operators to five flights a day. In the Mumbai airport, they are not allowed to fly during the peak hours of 8 am and 12 pm. "We lose a lot of business due to that," says Joshi.
WHAT JET OPERATORS WANT
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Relaxation of norms for chartered operators without compromising safety
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Better infrastructure at regional airports
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Reduction in tax on aircraft import
- More airport slots
