Companies lining up to buy business jets

MRF Tyres has signed a deal to buy a Bombardier Challenger for executive travel and Sun TV has bought a Bombardier 605 business jet. Both aircraft will be operated and maintained by Aerosource, a consultancy.

“There are four other companies that have firm plans to buy business jets,” said Aerosource Managing Director Vinod Singel. “We are seeing customers that had suspended plans coming back. Companies look at business jets when they have excess cash. Now it is happening,” he added.

India had seen a flurry of purchases of business jets and helicopters by companies and real estate and mining barons in the early part of this decade. At its peak, 40 helicopters were being used by mining barons in the Bellary region of Karnataka.

As the economy slowed down, these companies were forced to sell their aircraft to foreign buyers.

India has around 160 business jets in contrast with the US, which has over 20,000. Private jets in India, however, outnumber those in China and Japan. A study estimates India will have 1,360 business jets over the next two decades.

Most Indians who can afford private aircraft refrain from buying them because of infrastructural challenges, high costs and maintenance. Aerosource, which has helped nearly a fourth of business jet owners in India, says its clients look for end-to-end service.

“If you buy an Airbus and configure it for corporate use, the number of seats will be 18. But then there will also be a bedroom. Half of the aircraft will be converted into a bedroom and shower,” Singel said.