CAMPAIGN RACE CAUSES A POLL JAM IN THE SKIES
Hourly rentals for business jets have spiked with political parties mopping up most of the supply
charter consultancy firm.
The rate per hour for renting a Bell 407, a single-engine civil utility helicopter, has risen 43% since December to ₹2.5 lakh, while that of AgustaWestland 109S, a twinengine helicopter, has increased by about 27% to ₹3.5 lakh. Rates for Beechcraft Super King Air 250, a civil aircraft, have spiked 57% to ₹2.75 lakh an hour.
Meanwhile, data from the Airports Authority of India, the body responsible for managing the country’s civil aviation infrastructure, hints at increased usage of private jets for election campaigns. In February this year, the latest data available, aircraft movements by non-scheduled operators shot up 6.9% over the same month last year. In contrast, in February 2023, such movements declined by 22% over the same month in 2022.
One takeoff and landing are counted as two aircraft movements. Non-scheduled operators, which includes planes used by very important persons (VVIPs), don’t have a pre-planned flying schedule unlike scheduled operators such as IndiGo or Air India.
EARLY START
General elections in India are once in a five-year opportunity for aircraft operators. Preparations for leasing their fleet out start early.
Many charter operators Mint spoke to said that they started servicing their fleet in November last year, ensuring that all flying equipment was in shape. Some companies advanced their service schedule by a couple of months. Any aircraft requires routine maintenance, which is after 100 or 200 hours of flying depending on the aircraft type. Most Indian operators have older generation planes in their kitty—these aircraft require more servicing.
“All major maintenance work is completed well before the campaigning starts,” Rajesh Sahu, managing director and CEO of Aurea Aviation, an air charter service provider, said.
“In case an aircraft needs maintenancerelated checks during the election period, the operator has to provide the political party with a substitute aircraft,” an operator who didn’t want to be identified said.
PAYMENT TERMS
Once the planes are ready, comes the next crucial moment for any operator—striking a deal with a political party. But they have a choice. Renting out aircraft to political parties during the election period implies steady income.
However, if they hold on to part of their fleet, they can take advantage of last-minute spikes in rentals, when corporates come asking.
This election season, a large number of operators have chosen the steady income option. According to data sourced from two industry watchers, about 90% of the aircraft and almost all helicopters have been pressed into election duty.
Political parties hire jets for the entire election period, committing to payments for a fixed number of hours per day, irrespective of the number of flights made by an aircraft, said one person involved in the business. He didn’t want to be quoted.
In this season, political parties are offering committed payments for two hours to four hours everyday. The number of hours depends on the type of the aircraft and also its demand. “An operator gets paid for 120 hours during a 60-day election period, irrespective of whether the aircraft is flying or not. That’s the minimum,” said the operator quoted above.
A second change this season is the payment mode.“Earlier, a large part of the payment was made in cash. Now, it is made through cheques or transferred online. The BJP has taken a lead in making payments through cheque, etc.,” said an aviation insider, who has seen the business evolve over many years.
The expert didn’t want to be identified either.
WHO HIRES THE MOST
The BJP also hires the most. India’s largest political party has booked about 80% of the total available aircraft, informed two people involved in election flying. They didn’t want to be identified.
People tracking the business jet industry said that the party follows a centralized policy when it comes to hiring charters. The BJP also has a large number of senior politicians—they are provided planes to fly. In contrast, in most other parties, only a few top leaders are provided charters, they said.
“The gap between the BJP and other parties has widened. Today, the BJP hires a much higher number of jets,” said one of the persons quoted above.
The BJP did not respond to a clarification sought by Mint. Questions sent to the Indian National Congress on its private jet policy also remained unanswered.
REGIONAL DEMAND
During the 2019 elections, a regional political party from eastern India could not manage an aircraft in time for
election campaigning. Other parties had already mopped up the supply. This time, the party, having learnt its lesson, planned early. It leased an Embraer Legacy 600, a business jet, and has stationed it in a city in the state.
Apart from national parties, demand from regional parties is fuelling demand this election season and is further exacerbating the shortage of business jets.
“While state elections have an impact on demand, it is easier to manage since rallies are planned during the last phase of the elections,” Sahu of Aurea Aviation said. “Demand shoots up during the general elections mainly because there is demand from every political party,” he added.
Nonetheless, charter hiring by regional parties is less efficiently handled compared to how the BJP or the Congress party handles these operations. They start the negotiation process much later unlike their national counterparts.
“The requirements of a regional party are also less—they need fewer aircraft compared to a national party,” said a charter operator.
Some smaller regional parties use single engine helicopters manufactured by Robinson Helicopter Company when flying junior leaders. DGCA rules currently mandate that senior politicians fly a twin-engine aircraft or helicopter—twin-engine planes are considered safer.
Considering the demand-supply situation, smaller parties won’t have options anyway.
DGCA rules currently mandate that senior politicians fly a twin-engine aircraft or helicopter— twin-engine planes are considered safer.