Change Adversity to Opportunity
As business aviation opens up, the centre should provide a fillip and motivation for growth, say ssh ail end rap ra tap sing ho far row aircraft
The charter market in India has remained flat for the past decade and has not evolved as compared to the business model innovations seen in the US and Europe. However, in recent years, the market dynamics have changed significantly.
First, Covid-19 changed the way companies conduct business travel. The focus is now on traveling less, but safely. Business executives are moneyrich, but time-poor. They want to travel for business but want to do it in a safe manner and reduce as many touchpoints as possible during air travel. Many are now opting for business aviation instead of airline travel.
A Mckinsey analysis showed that a “person on the average commercial flight has about 700 points of contact with other people and objects”. In contrast, private jets only have “20 to 30” touchpoints, significantly reducing the exposure risk. This has led to a tremendous increase in the market size for business and private aviation globally, including India.
COST-SENSITIVE MARKET
Further, although India is a cost-sensitive market, it is now becoming more value and experience-driven. “Business executives who travel extensively, especially to Tier-2 cities, understand the value of time savings that can be derived by chartering a private aircraft as compared to traveling by commercial airline. They use private aircraft as a business tool, which helps them become more productive. They see the value of spending time with their families or enjoying their hobbies rather than being stuck at a crowded airport,” said Shailendra Pratap Singh, Director, Arrow Aircraft Sales & Charters Pvt. Ltd.
Hence, the increase in the business aviation market requires a huge reset in the role of governments and regulatory authorities. “The role of regulatory bodies in India should evolve into becoming facilitators of the air transport industry while ensuring that safety is not compromised in any manner. Further, business aviation infrastructure needs to be upgraded significantly,” said Singh.
Just as the government has taken a keen interest in making civil aviation accessible to the common man via UDAN initiatives, it now needs to focus on general aviation to propel the next level of growth in the aviation sector. Parking and FBO (Fixed Base Operations) infrastructure for business aviation at Tier-1 and Tier-2 airports need to be upgraded to make general aviation more accessible. A huge demand has arisen from Tier2 cities for medical evacuations. During Covid, critical patients had to be transferred from Tier-2 cities to Tier-1 cities for better medical facilities. Unfortunately, some infrastructure constraints combined with lack of aircraft resulted in many emergencies that could not be addressed in a timely manner.
CRITICAL INFRASTRUCTURE
On-demand aviation has also helped significantly in building critical infrastructure in India. Helicopters, with the use of LIDAR technologies, have significantly helped during the infrastructure and maintenance of power transmission lines. Further, aerial surveys have helped to lay out the alignments of highspeed rail corridors in India.
Business and private aviation is an industry that has survived and grown by itself in India. It needs strong government intervention to achieve its full potential. Just as airlines do, business aviation companies employ highly skilled engineers, mechanics, flight dispatchers, managers and pilots and are supported by several organisations which provide services such as aircraft maintenance, air charter brokerage, ground handling, food and beverage and technology. Thus, an increase in the number of business aircraft creates high-quality career opportunities for professionals who wish to contribute to the aviation sector.
As the prime minister mentions, we have to change the Covid-19 adversity into an opportunity. It is the right time for the government to make changes.