Indian Aviation Sector is the fastest growing aviation sector in the world as per the data collected in 2015, also the Government of India has opened the doors and eased out policies for FDI (Foreign Direct Investment) this year. Its growth rate is 20.3%. As per The International Air Transport Association (IATA), Indian Aviation Sector is at present the ninth largest in the world and is poised to become the third largest aviation market by displacing the one in the UK by the year 2026. IATA also predicts in the same report that the Asia-Pacific region will be a source of more than half the new air travellers over the next 20 years.
Along with the domestic civil aviation sector, the private jet flyers market in India is also experiencing a revival mode. After the economic slump in the country during 2009-10, this sector’s comeback is gradual but on a firm, note. India is comparatively a tougher market with respect to the western world for the private jet owners to survive and prosper. This is mainly due to infrastructural challenges and the high operative cost associated with the owning an aircraft add to the difficulties of the owners. When you own a plane, there are many fixed costs on the aircraft such as pilot, maintenance, and other miscellaneous aspects. The plane has to have a minimum of 800 – 900 hours of flying time per year – 90 hrs/month for it to become to own a jet practical and viable. There are also other issues like high fuel cost, airport charges and the duty structure for importing planes.
But the startups such as BookMyCharters, JetSetGo and JetSmart have taken off by sensing the slow but steady growing demand in this sector. They are offering quite a few choices in the private jet market. These companies are registering demands from not only major Tier-I cities like Delhi, Chennai and Hyderabad but also smaller Tier-II and Tier-III cities. Though the major chunk of business is in four metros and other major cities like Pune, Bengaluru, Hyderabad.
These private jet charter firms are working on similar lines to that of online travel aggregators. They allow users to compare the prices and schedules before booking tickets, also select aircraft types and add amenities. One of the impacts of these startups has been on the availability of a greater number of charter planes. They are offering fares that are much cheaper than those quoted by brokers. Earlier it was only brokers who typically represented three to four private plane operators, and ruled the terms. It is despite few odds here Private Charter Jet business has bright future.