Business aviation is on the upswing inIndia, and the country is poised to ex-perience an even bigger boom in the

sector as a result of favorable demographicsand rapid economic growth. International in-bound traffic is also growing in parallel withincreasing investment and trade activity. Thenation is attracting more international leisuretravelers, reinforcing demand for invest-ments in aviation infrastructure.

Located between the Middle East andFar East, the Indian subcontinent has strate-gic significance for trade and business, andthe aviation industry is poised to play amajor role in the nation’s growing economy.According to The Economist IntelligenceUnit, India might host 411,000 millionairesby 2017, making the nation one of theworld’s fastest growing markets.

General aviation in the nation is grow-ing faster than aviation as a whole, accord-ing to Capt. Karan Singh, president of theBusiness Aviation Association for India(BAAI). “All major business houses andhigh-net-worth individuals are aspiring toown aircraft,” he told AIN. He further ex-plained that the mindset of business leadershas changed as Indian companies now haveglobal ambitions. “Aircraft are considereda tool and not a toy,” he said, noting thataircraft ownership extends to many smalland medium-sized companies.

Currently there are 258 multi-engine tur-bine aircraft (99 helicopters and 159 fixedwing) and 85 single-engine turbine aircraft

(77 helicopters and eight fixed wing) inIndia. There are 88 nonscheduled operationcertificate holders with 255 aircraft. Privateowners operate 193 aircraft. Demand forprivate aircraft is increasing, according toGovernment of India Ministry of Civil Avi-ation Joint Secretary Arun Mishra, who toldAIN that the ministry approved 100 applica-tions for import of general aviation aircraftin 2006, and 200 (including helicopters) lastyear. Fifty-six new nonscheduled or charteroperators were given permission last year.

Airport InfrastructureAs the Indian economy has grown in

recent years, there has been a substantialincrease in demand for aviation capacity.To compensate, India has invested in newairports, terminals, runways and surveil-lance infrastructures.

India Civil Aviation minister Praful Patelhas said, “We will immediately upgrade 35existing airstrips. Every person living inIndia should be within 50 kilometers [31miles] of an airport,” as opposed to thecurrent 150-km [93-mile] trip to the airportfor many passengers. The country plans tohave 400 operating airports by 2020. Theministry is also envisioning “merchantairports” that will be independently devel-oped and run by private companies.

India currently boasts 454 airports andairstrips, but not all of them are operational.The nation has 16 international airports,102 airports for civil and general aviationand 97 owned and operated by the AirportsAuthority of India (AAI). The governmentof India has allowed private investment inaviation infrastructure at five airports.

The AAI is conducting a feasibilitystudy to look into the commercial viabil-ity of developing 32 currently nonopera-tional airports across the country forcommercial use. Most of these airportswere closed due to commercial nonviabil-ity and underutilization of runways.

Mishra told AIN, “The government’sVision 2020 envisions creating infrastruc-ture to handle 280 million passengers by2020. Investment opportunities of $110billion are anticipated through 2020, con-sisting of $80 billion in new aircraft and$30 billion in development of airport infra-structure.” The government plans majorinvestments in new airports and upgradesof existing airports, he added.

According to Singh, Mumbai and Delhiare the two major hubs for businessaviation in India. Both airports have beenprivatized and are being upgraded, to thetune of $4 billion, between 2006 and 2016.

54aaAviation International News • November 2008 • www.ainonline.com

The growing number of international leisure travelersvisiting India is responsible, in part, for the nation’semphasis on improving its aviation infrastructure.For example, the Taj Mahal, one of the country’smost powerful attractions, draws between two andfour million visitors annually, some 200,000 of whomare from outside India’s borders.

Business aviation in IndiaAs demand grows, operatorscontend with infrastructureand regulatory challenges

As more business aircraft are based in India,companies such as Delhi-based InterGlobe General Aviation are opening to serve the needs of bizav operators.

by Anand and Madhura Katti

AN

AN

D K

ATTI

INTE

RG

LOB

E G

EN

ER

AL

AV

IATI

ON

General aviation can use any of theexisting airports or airstrips. If the operatorwants to use a nonoperational airport, hemust obtain advanced permission from thedistrict magistrate’s office to give the officea lead time to provide services. A numberof states are realizing the value of operat-ing a dormant airport and making airportswithin the district available for landing andparking of private aircraft. The airplaneoperator pays a small fee for the service.

The country is also adding greenfieldairports–facilities built outside the main citylimits–where there is room for future devel-opment as demand rises. Greenfield airportsat Bengaluru (formerly Bangalore) andHyderabad are being built by private consor-tia at a total cost of more than $800 million.A modern greenfield airport in Bengaluruwas commissioned in May this year.

A greenfield airport is being plannedat Navi Mumbai to serve as the city’s sec-ond airport. It is being developed by apublic/private partnership at an estimatedcost of $2.5 billion.

In August the India Civil Aviation min-istry approved AAI’s plans to upgradeChennai and Kolkata airports. Kolkata Air-port, slated to receive $451.75 million inupgrades, will be complete by early 2011.Chennai Airport will be modernized at acost of $420.47 million by the end of 2010.

In addition to building new airports, Indiais upgrading the technology at its existingfacilities. The AAI added A-SMGCS (ad-vanced surface movement guidance andcontrol systems) to three of the country’sbusiest airports in June. Era Corp., in part-nership with the Holland Institute of TrafficTechnology, will provide multilateration andADS-B surface surveillance systems at Chha-trapati Shivaji International Airport in Mum-bai, Anna International Airport in Chennaiand Netaji Subhash Chandra Bose Interna-tional Airport in Kolkata. The system willallow for improved operations during IMC.

Thirty-five other city airports are also thesubject of upgrade proposals. According toDeccan Aviation executive chairman Cap-tain Gopinath, “Today, state governmentsare in a better position to pioneer the nextstage of the aviation revolution to assessthe connectivity needs of their region andpioneer new airports.”

For example, the government of Maha-rashtra state is working with the nationalgovernment to develop the existing NagpurAirport, located in the geographical centerof India as a multimodal international passenger and cargo hub airport. The proj-ect includes upgrading the existing airportto international standards as well as theconstruction of a second parallel runwayand modern terminal buildings.

Aircraft Maintenance The growth of aviation has also necessi-

tated development of maintenance facilities,some of which are specializing in businessaircraft. Before these services were avail-able, international airlines and private domestic airlines used Air India’s MROservices at Mumbai and New Delhi or trav-eled to the Middle East for maintenance.

Nagpur is fast emerging as an interna-tional aircraft maintenance hub. Boeing hasalready been allotted 75 acres in the Special

Economic Zone next to Nagpur Airport foran MRO facility. The company plans to in-vest $100 million for the project, though de-tails of the agreement have yet to be decided.

Bravia has acquired 35 acres of land for building hangars. Mumbai-based MaxAerospace, building a smaller MRO inNagpur on 15 acres, will be the third com-pany to open an MRO facility at the site.

Max Aerospace & Aviation performsairline engineering services on the Boeing737-400/700/800/900, Airbus A319/320/321/330/340 and ATR 42/72. Managingdirector Bharat Malkani told AIN that thecompany is establishing the Nagpur MROto “offer additional maintenance services to

our customers from both India and abroad.”Max Aerospace & Aviation recently un-

veiled a 30,000-sq-ft hangar and maintenancefacility at Juhu Aerodrome in Mumbai.

U.S.-based Duke Aviation has agreedto set up an MRO facility at Nagpur. Ma-harashtra Airport Development Company(MADC) vice chairman/managing direc-tor R.C. Sinha told AIN, “Duke Aviation,investing $35 million in the project, willbe allotted 30 acres of land.” The com-pany will begin with nonengineering workon curtains, flooring and painting beforetaking on engine maintenance work later.

India’s Jet Airways has approachedNagpur airport authorities about obtainingspace to start its own MRO facility.

Bengaluru in South India is anotherpopular base for aircraft manufacturingand operations. In December 2003, Boeingestablished a wholly owned subsidiary, Boe-ing International Corp. India Pvt. Ltd., thereto support the growing demands of India’saviation, aerospace and defense industries.

In December, Bengaluru-based HindustanAeronautics (HAL) signed a 10-year memo-randum of understanding (MOU) with Boe-ing to bring more than $1 billion of newaerospace manufacturing work to India.Under the agreement, Boeing and HALwill explore business opportunities aimedat transferring work packages to India with

an initial value of $10- to $20 millionannually, increasing in size and complexityas business opportunities develop.

Bengaluru is also the home for the AirbusEngineering Centre India, part of EADSTechnology Centre India. This campus-styleinstitution performs engineering and infor-mation technology services. Airbus Engi-neering Centre India, a subsidiary of Airbus,focuses on high-end engineering analysisand design. Indian engineers develop ad-vanced modeling and simulation and areinvolved in the design and production ofnew aircraft such as the A380 and A350.

For business aircraft, India-based Inter-Globe General Aviation and Hawker Beech-

craft opened a Hawker Beechcraft author-ized service center at the Indira GandhiInternational Airport in Delhi in June. This isthe first authorized service center for Hawk-ers in India. The facility also serves opera-tors in Afghanistan, Bangladesh, Bhutan, theMaldives, Nepal, Pakistan and Sri Lanka.

Last year India became the third largestgeographic region for sales of HawkerBeech aircraft (behind the U.S. and Brazil).

Nigel Harwood, CEO of InterGlobeGeneral Aviation, told AIN that by year-endthe company will have DGCA approval tomaintain 12 different types of aircraft.

The company’s 18,300-sq-ft facility features a VIP lounge, pilot offices, crewlounges, maintenance support offices and ahangar that can perform maintenance onup to six aircraft at a time.

InterGlobe General Aviation plans to ex-

pand into a full-fledged MRO facility forprivate jets in India by 2010. With that inmind, it plans to open its next authorizedcenter in Mumbai later this year and one ineither Chennai or Bengaluru by next year.In addition, next year it will add Gulfstreamand Cessna to its service offerings at Delhi.

According to Harwood, “Unfortunately,the expansion of MRO/FBO facilities hasnot kept pace with growth in general avia-tion and is inadequate. The recent tenderfrom Delhi Airport for an FBO, we believe,is the beginning of an emerging trend ofFBOs across India. We are beginning tosee encouraging signs that can only assistin this market.”

For the first time, New Delhi IndiraGandhi International Airport operatorsfloated an Expression of Interest for anFBO two months ago. Unfortunately, theconstruction of an FBO at Mumbai Air-port has run into legal obstacles and iscurrently dormant.

Charter and Fractional OperationsAs the economy grows and more people

recognize the value of business aviation,Indian businesses have looked to charterand fractional aircraft as a transportationalternative. The nation’s tax rules–25 per-cent on the purchase of an airplane–havemade charter flights and fractional owner-ship more attractive to Indian clients thanwhole ownership. As a result, a number ofcharter and fractional services have sprungup in the region. First, BJets, a member ofthe Briley group in partnership with the

Tata group’s Indian Hotel Co. (which runsTaj hotels), launched what it says is Asia’sbiggest fractional and block charter privatejet company in the third quarter.

BJets CEO Mark Baier told AIN thecompany has begun operating flights forselect clientele in the region. He pointedout that representatives of multinationalcompanies who are already using businessjets elsewhere are likely to be the first cus-tomers for these services. Regional compa-nies, as well as individuals from India’sgrowing corporate world and Bollywood,and sports personalities for whom time is at a premium, are logical users of theseservices as they seek to save time forfamily and other activities.

The company has ordered 20 CessnaCitation CJ2+s, 20 Hawker 850/900XPs

www.ainonline.com • November 2008 • Aviation International Newsaa55

Continues on next page u

Rajiv Ghandi International Airport in Hyderabad is one of the greenfield airports–airports locatedoutside the city proper–in India. It is one of India’s16 international airports. The modern airportincludes a nod to the traditional with its depiction ofthe Ramayana epic, above, a tale of virtue’s triumphover vice that is fundamental to Indian culture.

MA

DH

UR

A K

ATTI

MA

DH

UR

A K

ATTI

and 10 Hawker 4000s. It will have 15 air-craft by year-end.

Baier told AIN that while the company’soperations hub is at the new privately oper-ated Rajiv Gandhi International Airport inHyderabad, it will have aircraft positionedat major airports and will fly customersthroughout India and Southeast Asia.

GMR Hyderabad Airport CEO P.S. Nairtold AIN, “Three business aircraft supportoperators are negotiating for all FBO serv-ices with us. We have provided exclusiveparking space for business jets and plan tohave an FBO by year-end.”

Another fractional company, Club OneAir, will launch its low-cost arm this

month, according to managing directorManav Singh. The company will begin operations with 10 VLJs; but it has not yetspecified which model it will fly despite theclaimed imminence of operations. He saidthe low-cost service would be the first of itskind and would be targeted at members ofmiddle as well as senior management. ClubOne Air already operates eight aircraftoffering charter service.

Singh said, “No airport in India hasexclusive infrastructure for general avia-tion yet. The segment has potential togrow substantially if AAI and the Indiangovernment [can fix that].”

In July this year helicopter charter com-pany Deccan Aviation launched DeccanSkylimo, India’s first helicopter shuttle serv-ice from the new Bengaluru InternationalAirport (BIAL) to key business locations inBengaluru. Deccan Aviation executivechairman Capt. G.R. Gopinath told AIN,“The service will effectively cater to thegrowing spectrum of business and leisuretravelers looking for time efficiency.”

The Skylimo service connects BIALwith the old airport and with the electronicscity at prices of $112 and $135 per person,respectively. The service offers convenient

schedules at regular frequencies and drasti-cally reduces road travel time. The com-pany intends to extend operations to morelocations in the city.

Deccan Aviation also plans to launchcharter operations with two helicopters eachin Hyderabad and Mumbai by year-end.

Challenges for Growth of GAOne of the primary obstacles to the

growth of general aviation in India is thefact that the purchase and importation ofaircraft is a tedious process, requiringclearance from a number of agencies.There is an import duty applicable only toaircraft purchased for general aviation, andthere are basically two categories of permitfor importing aircraft for GA: one is pri-vate and the other is nonscheduled opera-tor. All private airplanes incur a duty ofapproximately 25 percent, which includes3-percent customs duty, 16-percent coun-

tervailing duty, 4-percent special additionalduty and some surcharges.

Capt. Singh of India’s business aviationassociation said, “That is a dampener forthe growth of the segment. Forty percent ofprospective buyers might put off theirplans. If a person is buying an aircraft for$20 million, he might sell it after two yearsat the same cost. In that case a 25-percentduty will be a loss for him.” BAAI is lob-bying the Indian government to reduce theimport duty on aircraft purchases.

He pointed out that users of businessaircraft provide a revenue source for thegovernment beyond the import duty. “Thegovernment earns incidental revenues fromthis sector in many other ways. Also, thebuyers are high-profile individuals who addto the country’s economy through theirbusiness activities.”

Another obstacle for business aviation isthe length of time required to obtain permis-sion to operate in the country. Foreign oper-ators must give notice of at least seven daysbefore their arrival. That can extend to asmuch as a month if they have to land atPune, Agra or Visha-khapatnam, which areunder India’s defense control. BAAI is alsolobbying for a reduction in licensing time. o

56aaAviation International News • November 2008 • www.ainonline.com

R U S S I AR U S S I A

FINLAND

AUSTRIA

ITALY

SPAIN

SWEDENNORWAY

FRANCE

PORTUGAL

HUNGARYROMANIA

BULGARIA

TURKEY

DENMARK

POLANDBYELARUS

UKRAINECZECH

SLOVAKIA

GREECE

CYPRUS

NETH.

BELGIUMIRELAND

YUGOSLAVIA

ALBANIA

MOLDOVA

LITHUANIA

LATVIAESTONIA

LUX.

BOSNIACROATIASLOVENIA

SWITZERLAND

MACEDONIA

GREENLAND

ICELAND

U. S. A.

CANADA

MEXICO

THE BAHAMAS

CUBA

PANAMA

EL SALVADORGUATEMALA

BELIZEHONDURAS

NICARAGUA

COSTA RICA

JAMAICAHAITI

DOM. REP.

ARGENTINA

BOLIVIA

COLOMBIA

VENEZUELA

PERUBRAZIL

FRENCH GUIANASURINAME

GUYANA

CHILE

ECUADOR

PARAGUAY

URUGUAY

FALKLAND ISLANDS SOUTH GEORGIA ISLAND

KENYA

ETHIOPIA

ERITREASUDAN

EGYPT

NIGERMAURITANIAMALI

NIGERIASOMALIA

NAMIBIA

LIBYA

CHAD

SOUTH AFRICA

TANZANIA

ZAIRE

ANGOLA

ALGERIA

MADAGASCAR

MOZAMBIQUEBOTSWANA

ZAMBIA

GABON

CENTRAL AFRICANREPUBLIC

TUNISIA

MOROCCO

UGANDA

SWAZILANDLESOTHO

MALAWI

BURUNDI

RWANDA

TOGOBENIN

GHANA

IVORY COAST

LIBERIA

SIERRA LEONE

GUINEA BURKINAGAMBIA

SAO TOME & PRINCIPE

ZIMBABWE

CONGOEQUATORIAL GUINEA

WESTERN SAHARA

DJIBOUTI

SENEGAL

GUINEA BISSAU

Canary Islands

Reunion

JORDANISRAEL

LEBANON

ARMENIAAZERBAIJAN

GEORGIA KYRGYZSTAN

TAJIKISTAN

KUWAIT

QATARBAHRAIN

U. A. E.

OMAN

YEMEN

SYRIA IRAQIRAN

OMANSAUDI ARABIA

AFGHANISTAN

PAKISTAN

INDIA

C H I N A

KAZAKHSTAN

TURKMENISTAN

UZBEKISTAN

MYANMAR

THAILAND

KAMPUCHEA

NEPALBHUTAN

VIETNAM

SRI LANKA

LAOS

BANGLADESH

PAPUA NEW GUINEA

BRUNEI

PHILIPPINES

TAIWAN

MALAYSIA

I N D O N E S I A

JAPAN

MONGOLIA

SOUTH KOREA

NORTH KOREA

AUSTRALIA

NEW ZEALAND

U. K.

MALTA

NEW CALEDONIA

FIJIMAURITIUS

Greenland SeaBeaufort Sea

Gulf of Alaska

Bering Sea

North Atlantic Ocean

A t l a n t i c O c e a n

Labrador Sea

Baffin Bay

C a r i b b e a n S e a

Arctic Ocean

Hudson Bay

Gulf of Mexico

North Sea

Norwegian Sea

Black Sea

RedSea

Caspian Sea Aral Sea

I n d i a n O c e a n

Bay of Bengal

South China Sea

Timor Sea

Great Australian Bight

Philippine Sea

Arafura Sea

Sea of Japan

Sea of Okhotsk

Coral Sea

Pacific Ocean

Tasman Sea

P a c i f i c O c e a n

Agra

Kolkata2

Hyderabad

Nagpur

Pune Vishakhapatnam

Bengaluru3Chennai

Mumbai1

800 km1 Bombay2 Calcutta3 Bangalore

500 mi

New Delhi

TAJIKISTAN

AFGHANISTAN

PAKISTAN

INDIA

CHINA

TURKMENISTAN

MYANMAR

NEPALBHUTAN

SRI LANKA

BANGLADESH

Indian Ocean

Arabian Sea

Bay of Bengal

Andaman Sea

Business aviation in

IndiauContinued from preceding page

India’s location between the Middle Eastand Far East positions it well for furthereconomic growth.

www.ainonline.com • November 2008 • Aviation International NewsaaXX