'Private jets business not looking rosy'

Even as many are gung-ho of the prospects for general aviation in India in the mid-term to long-term, things may not be so good in the short term going by the what’s happening to general aviation in India.

Over an year ago, there were plans from individuals and firms in the north Karnataka region, particular the Bellary region, to buy 8-10 aircraft for personal or a company’s use. One of them even wanted to buy four jets. But, “the lack of clarity on the duty to be imposed scared most of them and they cancelled their plans for importing aircraft,” said a person familiar with the development. He also markets private jets. He added, “One individual fearing that his name would become public if he ended up on the wrong side of the law, cancelled the order he had placed for an aircraft.”

Over a year or more earlier, the aviation sector was growing and was a sector expected to boom in future.

But, the general aviation sector, including business jets and arircraft for private use, flattered to deceive. The unclear policies, according to some experts, are to blame for this state of affairs. If an aircraft imported for personal use is chartered out, then a huge fine is imposed.

According to a supplier of business jets in India, “Some, who wanted to bring in aircraft did not want the duty imposed and hence decided against bringing in the aircraft.”

The fall in the value of the Rupee has also discouraged a few who wanted to buy aircraft. Their Rupee cost for aircraft has shot up over the last month or so ever since the Rupee began sliding against the Dollar.

According to a person well-versed with the industry,

“General aviation can help support airport infrastructure. They can help keep the smaller airports well-managed.” The US has 130,000 general aviation aircraft and 10,000 business jets. They are said to have triggered the development of the smaller airports.

India Aviation which is on in Hyderabad, exclusively aimed at general and civil aviation, had hoped to be a big draw for buyers of business and other aircraft for private use. “But,” said Kapil Kaul, CEO, Centre For Asia-Pacific Aviation (CAPA) “the event is about the long term prospects of aviation.”

CAPA is the region’s leading provider of independent aviation market intelligence, analysis and data services.