dare.co.in
opportunity/travel
Business is in the air
As corporate India lines up to buy aircraft, Rs 1,500 crore every year is in the wings waiting to be made. Are you game to catch this wave?
I
f it was not for a friend who sought his help in buying a personal jet four years ago, Karan Singh would still have been a pilot on commercial aircraft. “He wanted me either do it for him or get it done through someone else. I chose the former,” says Singh, CEO of Kubase Aviation, the company he started four years ago to help his friend buy that plane. Kubase has subsequently diversified into aircraft management and maintenance. And Singh is currently negotiating a JV with a global major. Walk into any airport in the country and the roar of an industry on the upward curve is unmistakable. And if you look carefully, you will see that it is not just the commercial aircraft, an increasing number of private aircraft are also jostling for landing slots and space at every airport.
22 OCTOBER 2007
/Krishna Kumar and Vimarsh Bajpai
DARE/view Segment: Corporate Aviation Size: Rs 1,550 Cr ($30 million) per year What’s in it?: From buying to management and maintenance, there is many an opportunity for entrepreneurs in the country’s sunshine sector Limitations: Stringent regulations, manpower shortage, poor infrastructure
Corporate India has taken to flying in its own aircraft in a big way. Mukesh Ambani and Vijay Mallya own fleets, but the others, including the smaller corporates are in no way behind. Bizjet owners include GMR Group, Punj Lloyd, Hindustan Construction, Venkateshwara Hatcheries, and Jaiprakash Associates. NDTV has helicopters. An increasing number of corporates across the country are queuing up to
buy their own aircraft. A wide variety of aircraft, ranging from helicopters to small and medium range propeller driven craft like the Beachcraft King Air to business jets like the Cessna Citation to full-fledged Boeings are all there in this shopping list. Buying and maintaining an aircraft is no easy task. First of all you need to identify the right type of aircraft that fits your needs and budget. Then you need to find one that is on sale. Unlike with, say cars, aircraft have very high resale value and it is more likely that someone buys a used aircraft rather than a new one. You also need to ensure that the aircraft you are purchasing has a clean record—that it has not been used for drug-running or arms-smuggling. As you can see, buying an aircraft is not only costly but also not easy for the uninitiated.