BUSINESS AVIATION INDIA'S MISSED OPPORTUNITY?

India's Missed Opportunity?

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Bullish about its commercial aviation growth, India should have had this inevitably mirrored in the business aviation sector as well. But mounting logistical challenges stands in the way of an anticipated growth in India's business jet fleet, which currently stands at barely 140 aircraft. The aviation market is widely anticipated to touch $37 billion by 2035, but the path for business jets is tricky.

The demand is definitely high. Corporate biggies are queuing up to acquire more business jets than ever before. But the challenges now look imposing: High fuel costs, inadequate infrastructure for aircraft maintenance and repair, poor airport facilities and a stifling shortage of pilots and trained staff. Scaling these could be tough, but a tougher hurdle stands right at the jet acquisition phase: Lack of policy clarity in importing aircraft.

Tedious import process

Unlike in many developed markets, the import process in India is widely dubbed as tedious, taxing and time-consuming by aviation analysts. The Directorate General of Civil Aviation (DGCA) norms on both import and business jet operations are seen as too harsh for the market to grow.

Industry watchers are convinced that relaxing the norms would aid the sector to take off in a big way over the next five years. During the forecast period from 2024 to 2030, India's aviation market size is projected to grow from the current $13.89 billion to $26.08 billion. This accounts for a CAGR of 11.08%.

The business jet market in the country remains largely untapped. Consider this: The United States has a whopping 12,051 registered business jets, far ahead of Brazil with 764, Mexico with 704 and Germany with 387 jets. India's current fleet of 140 is seen as grossly underwhelming considering its GDP size and the number of Ultra-high-net-worth individuals (UHNWI), which currently stands at over 13,000. Those with a net worth of at least $30 million are identified as UHNWI.