Indian private aviation to be worth Rs5,000 cr by 2020
15 December 2015
India's domestic private aviation business is set to grow multi-fold to Rs5,000 crore by 2020 from Rs1,800 crore in 2015, on the back of the rising popularity for such services in non-metro markets, according to the report by Baron Aviation.
The report says the private jet market is witnessing tremendous expansion in non-metros, which makes it confident of growth to the tune of 30 per cent in the segment soon.
Baron, a private jets brokering service provider, on Monday launched an online platform for both operators and users under the brand name of BookMyCharters.
Baron chairman and chief executive Rajeev Wadhwa said his portal has already roped in 40 private jets from 12 operators and one can book a plane in 60 seconds with complete transparency in pricing.
The 12 operators which have enlisted with Baron online service include Club One Aviation, Jindal Aviation, Supertech, Raymond, Imperial Air and Orbit Aviation, Wadhwa said, adding by the month-end, there will be 10 more planes on the site.
Wadhwa said of these 40 planes, 75 per cent are registered in Delhi, which is the capital of private aviation business in the country. Mumbai, despite being the corporate capital, does not have much scope as the city airport is the costliest in the world when it comes to aviation charges, which are nothing less than Rs1 lakh for a day, he said.
Asked about his firm's commission from each deal, he said it will be 2-3 per cent of the booking amount, which is fixed by the jet's owner. But he refused to divulge if this is lower that a manual booking or not.
Wadhwa said the domestic private jet market has 126 operators with 194 planes, but 79 of them just have 1-2 jets.
He said while global flying average per plane is 800-1000 hours a year, in India, this is only 300-400 hours but expressed the hope with his online booking venture this can go up to 600 hours over the next few years.
Wadhwa said the technology behind the platform is proprietary and patents for this innovation have been filed.
Asked about the volume of incremental business expected with this venture, the Baron chief executive officer said he sees 30-40 per cent of current air charter users migrating to the platform over the next one year, which in turn can boost the market by 30 per cent.