AIRCRAFT MANAGEMENT: THE CASE FOR DECOUPLING

Why India Needs Specialised Aircraft Management Companies for its Business Aviation Sector

- By SANJAY JULKA, CEO TECHNICAL, CLUB ONE AIR

THE INDIAN AVIATION SECTOR IS ON A METEORIC TRAJECTORY, with record-breaking aircraft orders and a burgeoning demand for private and business travel. However, a systemic bottleneck persists on the ground: the regulatory hesitation to fully embrace the Aircraft Management Company (AMC) model. While global aviation hubs thrive by separating aircraft ownership from operation, Indian practice often insists on a “Unified Entity” approach. To achieve the government's vision of “Safer Skies,” it is time to shift this paradigm.

THE SAFETY ARGUMENT: INTEGRITY OVER PROFIT

The most compelling reason to separate the owner from the operator is flight safety. When the same entity owns the asset and manages the operation, a dangerous conflict of interest arises. The owner- operator bears the full weight of the Profit and Loss (P&L) statement. In times of financial pressure, the temptation to cut corners—deferring “nonessential” maintenance or pushing crew duty limits—becomes a systemic risk.