Demonetisation has hit business jet operators: BAOA

The Government's demonetisation move and the subsequent cash crunch has "hit" the business jet operators in the country with some of them witnessing cancellations though not significant, according to an industry executive.
"Now there is no cash. That is creating a lot of strain on us. The Government will have to move to get all these small operators to accept online payments," Business Aircraft Operators' Association President Jayant Nadkarni said on the sidelines of the launch of a report titled "Business Aviation in India".
BAOA is a body of business and general aircraft operators in the country.
Stating that it was difficult to give out any numbers at this stage because it (the demonetisation has just happened, he said, "But we are already seeing .. There is a little bit of a plateau happening there is little bit of decline happening."

"There is an operational crunch which we are facing immediately. We will tide over it but in charter aviation in business aviation when you go to small towns most of the payments are done in cash to the ATC, airport operator ETC/ This is because you do not know how much you have to pay," he said.
All business jet operators have to pay charges for landing, parking and route navigation facility to the airport operators for all landing and take-offs.

"It will not be in double digit it will be in single digit it will be near double digit I would say. It is very off the cuff thing because data is still coming in but close to double digit. We are seeing the same trend pan India," Nadkani said.

When asked whether he had come across any instance of an his association member failing to operate the charter flight due to non-availability of cash, Nadkarnmi said, "It is quite possible that it might have happened. But the data is still coming in."
BAOA has already raised the issue with the government and has sought from the airport operators to accept online payments or through credit card, a mechanism which would help it solve the problem.
"The aim of the BAOA Industry Report is to present and
make aware the contribution, role and strategic fulcrum, that Business Aviation has played with shaping the India of today. Business Aviation is no longer a corporate status symbol, but an imperative business tool needed by Captains of Industry and National Leaders to grow in a highly competitive global business environment" Nadkarni said.

The report highlights examples of efficiencies imparted by Business Aviation, and how this sector makes the country more stable and secure, as employment and economic sustenance is provided to people through industries that are set up by businesses. It enhances economic development which goes on to benefit the common man and a resurgent India.
According to the association, business aviation in India continues to remain much below its potential.
"In sharp contrast to the growth of scheduled airlines, business aviation in India over the last 5 years charted a meagre 2 per cent growth," it said.
Provided certain immediate and long term actions are taken, India is looking at a relatively conservative fleet growth projections of about seven per cent over a long period, a median between best case of 12 per cent and as is case today of 2 per cent, the report said.

"What emerges from this report is a powerful message. That message is Business Aviation is the catalyst India needs to grow and attain its regional and global supremacy; and we are firm in our judgement that the challenges and hurdles this industry faces must not be overlooked as that may be construed as being restrictive and not conducive to growing India," Mark D Martin, Founder & CEO, Martin Consulting LLC said.