This story is from February 8, 2007

Flying high: Corporate India on jet buying spree

Darlington Jose Hector / TNN / Feb 8, 2007, 02:33 IST

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Indian corporate houses seem to be flying high in more ways than one.

Flying high: Corporate India on jet buying spree

BANGALORE: Indian corporate houses seem to be flying high in more ways than one. Not only are they buying international firms off the shelves but also picking up private jets along the way.
Last year Indian corporate majors placed about 45 orders for private jets. The likes of Gautam Singhania, Anil Ambani and Kalanidhi Maran are among those who placed orders.Corporate houses like DLF, GMR, Suzlon and Videocon have also joined the party along with mine-owners down south.
A Bombardier official told TOI that going forward many corporate houses will be forced to opt for jets. "Their needs are growing with the spread of their business network. A Bangalorean hotshot was the latest to place an order with us. But we can't let the name out," he said.
Most of these jets cost anything between $12 million to $56 million. But Indians are fast recognising the business value a private jet can bring to the table.

Raytheon Aircraft Company, makers of the Hawker and Beechcraft planes, is exploring the possibility of establishing a Hawker maintenance facility in India, in association with a fixed base operations (FBO) service provider.
FBOs offer private jet owners not only repair and maintenance facilities, but also hangarage, security and flight clearances, flight planning, and custom clearances for overseas sorties. Car rentals, charters, private lounge and gourmet meals are also part of the deal.

"With many Indian corporates having a pan India footprint, there is a greater need to travel. This has boosted the demand for business jets in India," says Ted Farid, VP (international sales) in Raytheon.
In US where there are over 5,000 FBOs (including Hawker Pacific, Jet Aviation and TAG), corporate bosses owning jets enjoy a private enclosure in the airport with exclusive walk through facilities.
"But India has some way to go before reaching that stage. We are confident that the Indian government will look into these issues," says Farid.
Even a backward but prosperous district like Bellary in Karnataka is turning into a centre for choppers and private jets. Of the 45 private jets in India, eight (including choppers) belong to Bellary where mine owners rule the roost.
Airbus executive vice-president (marketing) Kiran Rao said the Indian corporate jet scene will only improve from now on with the government keen to settle infrastructure issues. "Vijay Mallya has our A319 corporate jet for company," he said.
Air Deccan managing director Capt G R Gopinath shares this optimism. "The number of wealthy people are on the rise, and their needs are also growing. Over the next 10 years the private jet market in India will boom, though it will still remain the preserve of the chosen few."

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