Air charter operator Club One Air is in talks with US-based business aircraft manufacturer Eclipse and another American aircraft manufacturer to establish a maintenance, repair and overhaul (MRO) services centre for very light jets (VLJs) in India. | |
| "We are in advanced talks with Eclipse Aviation to bring the very first VLJ, the Eclipse 500 to India soon. We plan to tie-up with them to put up an MRO service centre in India. While Eclipse will provide the aircraft and maintenance technology, we will fund the entire project and provide the crew and charter services for the aircraft," said Manav Singh, promoter and managing director, Club One Air. |
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| Singh had held talks with Eclipse and other manufacturers at the Dubai Air Show last week. Eclipse Aviation has Microsoft chairman Bill Gates as one of the key shareholders in the company. |
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| For the MRO centre, which would incur an investment of below Rs 500 crore, Club One Air is in talks with state governments in Punjab, Haryana and Madhya Pradesh for land for the project. |
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| The first VLJ will be inducted into Club One's charter services by March next year. The carrier plans to add at least 10 aircraft between March 2008 and March 2009. |
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| "We expect to start with one aircraft in March next year. We will enhance our operations as we will get two aircraft every two months after this. We are expecting certification from the US Federal Aviation Administration (FAA) and the Directorate General of Civil Aviation," said Ashok Pratap Rai, director, Club One Air. |
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| Apart from the ten aircraft, the company also has plans to lease out aircraft either through fractional ownership, where the aircraft is owned by different owners, or the full ownership model, wherein services and the crew are provided by Club One Air. |
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| "Several real estate and oil companies are interested in acquiring VLJs. Apart from that, several small and medium enterprises (SMEs) have also shown interest in the aircraft because of the low capital and maintenance costs," said Singh. |
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| A VLJ is priced at around $1.5-3 million whereas a turboprop or a jet aircraft would cost twice as much. The direct operating costs, which includes fuel and maintenance among other factors, is also 20-50 per cent lower at Rs 30,000/hour. |
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| However, using a turboprop or jet aircraft, which is currently used for charter operations, would take operational costs to Rs 50,000-Rs 1 lakh/hour. Also, a VLJ is faster than a turboprop and takes almost the same amount of time for a short haul destination as an A320. |
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| Club One Air is going to launch its domestic low-cost operations next year at prices that are 50 per cent below those currently charged by charters firms. |
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| A low-cost or no-frills charter will be on the same lines as a low-cost scheduled carrier. For instance, a low-cost charter passenger will get basic facilities such as snacks on board rather than elaborate meals. |
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