Upcoming 2019 General Elections and Positive Government Interventions to Revive Indian Business Aviation Sector: Ken Research

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Better airports, airstrips, development of infrastructure, regional connectivity, government liberalization policies, growth in the business sector, oil and gas sector, increased use of pilgrimage charter and air ambulance and rising demand from government have been the key factors driving growth in India business aviation market.

Indian business aviation sector has showcased resilience in the past but is now poised to witness positive growth with general elections and constructive government interventions on the cards.

According to International Air Transport Association, India’s Aviation space is expected to be third largest aviation market (currently 9th largest) by 2026 displacing UK from its spot. Business Aviation market has witnessed subdued growth primarily due to high operational cost, difficulty in ease of doing business, complicated tax structures, inadequate infrastructure and complex process to obtain operating licenses. The industry has experienced a small positive growth rate in financial year 2018 with the increase in corporate travel, rise in the number of HNI’s and diversification of fleet size. Development of new and existing airports, stirring regulations, regional connectivity, persistent efforts of industry leaders in changing industry perception, growth in the oil industry, and the overall boom in the economy have also contributed to the increasing demand. India will follow the footsteps of its global counterparts to reconstruct business aviation as a significant contributor in the national income.

Increased use of private charters by politicians, business executives, for oil transportation, development of infrastructure and air ambulance has helped the market to achieve the increase in the growth rate. The review period has witnessed an improved focus on developing the infrastructural facilities, expansion of company operations, regulatory liberalizations, leading to a gradual increase in demand. There has been a significant increase in government support to promote the business aviation sector. It has been included for the first time in the UDAN Regional Connectivity Scheme in 2018. Amongst the entire Indian fleet, Falcon 2000, Hawker 850XP and Cessna Citation XLS have been the most popular choice. Demand is usually originated from regional clusters including Mumbai, Delhi, Bengaluru, and Chennai with majority of fights operating on spoke-hub model. The model involves the customers to charter aircraft for flying to tier 2 cities do to unavailability of sound commercial aircraft connectivity. There are currently more than 200 airports in India that can be accessed by business aviation flights.

Major companies have diversified their revenue streams, entered into international affiliations and upgraded their aircrafts to foster the market demand. The industry is undergoing a consolidation phase, with small fleet aircraft owners looking to surrender their air operator certificates (AOCs) and are seen shifting to operate as aircraft management companies. They provide charter services along with ground handling, MRO, in-flight services, training academies and hospitality services. This has helped them to reduce their cost of operation. The new highlights in the industry are the introduction of app-based programs for charter booking. Several technology companies have entered the market with asset light model to ease the booking of charters and make it available as per the needs of the customers. Number of trips due to election rallies has increasingly contributed to the business aviation sector. The anticipated 2019 General Elections are expected to see the high use of private aircrafts due to the flexibility and regional connectivity provided by business aviation.

Mumbai and Delhi have been the major regional clusters with highest number of NSOP and private planes registered. Moreover, these cities have highest political movement and are known to be biggest commercial hubs in the country. In terms of revenue generated, Reliance Commercial Dealers, Air Charter Services, and Global Vectra Hellicorp have been the leading players amongst others. Many companies including these and Aviation witnessed positive revenue numbers in 2017. However, companies such as Airworks MRO Services Private Limited, Indamer and GMR Aviation Private Limited witnessed declining revenue figures hence, struggled to sustain operations.

The report titled “India Business Aviation Market Outlook to 2030 – By Revenue Stream (Aircraft Charter Income, MRO Services, Ground Handling, Aircraft Sales Commission and Hospitality Services (F&B) & Aviation Academy), by Fleet Type (Helicopters, Turboprops and Jets) and by Fleet Distribution” by Ken Research suggested a growth at a CAGR of close to 6% in revenue of India business aviation market by the end of financial year 2024.

Key Topics Covered in the Report

Indian Business Aviation Industry

Air Charter Booking Industry India

Air Medical Services Industry India

India Aviation Industry

Air Charter Industry India

Business Aviation Growth India

Business Aviation Airports India

Corporate Aviation Market India

Fractional Ownership Aviation India

Emergency Medical Services Industry India

Helicopter Medical Emergency Market India

Aerial Survey and Photography Market India

India Business Aviation Market

India Business Aviation Market Outlook

For more information on the research report, refer to below link:

https://www.kenresearch.com/automotive-transportation-and-warehousing/general-transportation/india-business-aviation-market/170612-100.html

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