UNTAPPED POTENTIAL OF BUSINESS JETS IN AN ENCOURAGING MARKET

India's business jet market is witnessing growth, fueled by rising UHNWIS and increasing private jet demand. Yet, challenges like high operational costs, inadequate infrastructure, and unclear fractional ownership policies hinder its full potential, explains R. CHANDRAKANTH

- R. CHANDRAKANTH

India is on the cusp of unprecedented growth in the commercial aviation sector passenger and cargo movements are soaring, and major airports are chock-a-block. With rising demand, increased economic activity, higher disposable incomes, massive surge in tourism and better infrastructure, the aviation market in India is in its most exciting phase. Adding to that excitement is the general aviation/business aviation segment, with the ultra-high-net-worth individuals (UHNWIs) wanting to fly in comfort and in style. This is resurgent India.

According to Knight Frank's "The Wealth Report 2024, the number of UHNWIS is expected to increase to 19,908 by 2028 from 13,263 in 2023, leading to an unprecedented 50.1% growth, the highest for any country, in the next five years. They are one of the major drivers of business jet growth in India.

With such demand, the business jet market in India had a 7% year-on-year growth in 2023. India accounted for 151 of the 1,154 business jets in operation in the Asia-Pacific region. Mainland China has 272, and Australia has 213 business aircraft, though the former has been registering a net decline since 2020.

Net Addition of 7 Aircraft

According to the Asian Sky Group, India saw a net addition of seven aircraft, with one new delivery, 12 pre-owned additions, and six deductions. Three net Long-Range Jet additions, two Globals and two Gulfstreams, joined the fleet. Medium and large jets each accounted for one quarter of the Indian fleet.