Business Aviation

The stakeholders of Business Aviation in India who operates aircrafts under Non Scheduled Operators Permit (NSOP) wants the government should give them the status of an organised industry so that their issues can also be kept at par with the scheduled operators. In a candid interview, Gp. Capt. R K Bali (Retd.) Managing Director, Business Aircraft Operators Association( BAOA), talks with Vishal Kashyap, Managing Editor, Aviation World about the key initiatives taken by his body with the MOCA which is yielding good results, but still some loose screws need to be tightened and requires prompt attention by the policy makers and regulators for holistic growth of the sector. How do you analyze the business aviation market post pandemic? What steps are being taken for the sector to grow up to its potential? After the pandemic there is so much growth, so much of demand that the charter or the private flying that we need to tap on this demand and going forward to optimize the business aviation which I means to charter the aircraft, to own the aircraft, for making business more efficient , more cost effective. And, one way of doing that is seeing that the growth is as per the potential which can only be achieved if we do some consolidation in the industry. And one thing which we are recently doing & accepted by the ministry on 10th October 2022 was the fractional ownership which is just quite a different model than what it was earlier . We have seen what lessons even US has learnt from it . Because they have started somewhere in 2004 and 2005.We have recently issued guidelines and see that going forward. These are: (i) Fractional Ownership: Through fractional ownership, one can reduce the cost of owning & operating the aircraft. Thereby, more growth will take place because people will be spending less money on the aircraft which they use to do it before. (ii) Rationalization of Taxes: The custom duty or import duty which is very high on private owning , that is 28 % + 3% cess, which adds to 31 %. We have already taken up by the ministry and they are quite convinced because there has been hardly any import. There is no point having such a high tax barrier that doesn’t allow the aircraft to be owned in the private category. Our recommendation to the ministry is to rationalize it and make it 12 % while for NSOP its 5 % which is ok. So, this is the change that we are trying to bring. (iii) Affordability of Airport Charges: The business aviation operates all over India as chartered or private operation under NSOP, they have so far been levied really unaffordable airport charges. We have taken it up and another step forward in this direction. By ministry agreeing and issuing directive to all the airports and AERA to make it itemized and we are further working on it to make sure that even the itemized charges are very reasonable and affordable. Though, the AERA adopts a soft touch approach to decide charges but they have to be comparable as you know ground handling is still not a regulated industry anywhere in the world. I was working on it till it became regulated as the workers are unlicensed. We have approached AERA and the government to have the charges rationalized as per the labor rates of skilled and semi skilled available, so that these charges are rationalized. (iv) Infrastructure: First option which will become more important as our operations increase. So, for every new airport or modification or improvement of the airport, we have asked for separate General Aviation terminal to be made available for business aviation parking and which is there to happen especially at big airport. Till than, the government has agreed with our proposal to allow non-standard parking as per fees for which DGCA has also been told by the government to issue to accommodate more aircraft in non-standard bays so that safety concern are looked into and we are able to have more aircraft flying to destination to the busy airport where the business presently is going forward .We know that the business is going to come from tier 2 & tier 3 cities also. Right now, we are looking forward to have more FBOs coming up at those airports as we have also shared a concept on FBO with the ministry. So, hopefully in the next 5-10 years when all the things will be in place with fractional ownership , tax rationalization and affordability of airport charges , we are sure that business aviation will grow to its potential in the coming years. How do you see the concept of GIFT city and its benefits in long term? The GIFT city was formed around three years back and it’s a very good step. In fact, we were lacking in that and that ’why government has come up with that. It’s a big initiative in the ministry specially the earlier Senior Economic Advisor Madam Vandana Agarwal who was spearheading this. There are some teething problems about banks getting actively involved to get lease rates or interest rates at very competitive rates near to what existing around the world. So, we are working on it and recently conducted workshop on it held by GIFT city head in Delhi in which secretary Civil Aviation also participated. Rest things are being discussed and going forward I feel there is lot of traction taking place there. But going forward I see that in next 3-4 years, GIFT city will be playing a major role in getting the aircraft imported at the rate at which people will not have to depend on other countries like Ireland and such states where people have been leasing aircraft. It is going to take time and as of now we are in the initial stages. Any pertinent issue that you think still needs to be resolved at the ministerial level? I

Farnborough, UK, July 20, 2022: Nordic Aviation Capital (NAC), the world’s largest regional aircraft leasing company, has agreed a memorandum of understanding to place the first two E190F passenger-to-freight conversions with Astral Aviation, based in Nairobi, Kenya. In May 2022, NAC and Embraer reached an agreement in principle to take up to 10 conversion slots for E190F/E195F, with first deliveries starting in 2024. The aircraft for conversion will come from NAC’s existing E190/E195 fleet. Sanjeev Gadhia, Founder & CEO Astral Aviation, said, “We are honored to be the launch operator of the Embraer 190F, which will be based in Astral’s Nairobi hub. It will operate on a combination of scheduled and charter flights on our intra-African network. The E-Jets are well known for their efficiency, flexibility and sustainability. We are confident that the E-Jet freighter platform will be a game-changing addition to our growing fleet. We are grateful to NAC and Embraer for choosing Astral to be the launch operator of the E-Jet Freighter.” Norman C.T. Liu, President & CEO of NAC, said “As a launch lessor for the E-Jet freighter conversion program, we are pleased to have executed a MoU to place two E190F aircraft with Astral Aviation, a leading cargo carrier servicing Africa. NAC aims to remain the leader in regional aviation and expand into larger narrow body aircraft, while building our full life cycle asset management capabilities.” Johann Bordais, President & CEO, Embraer Services & Support, said, “The response to Embraer’s P2F program, which was launched only in March of this year, has been incredible. NAC has already placed their first two aircraft, and it’s great to welcome yet another operator to our E-Jet family.”

Singapore, 16th February 2022: At the Singapore Airshow 2022, Aerodata AG Germany has ordered two Textron Aviation Beechcraft King Air 360 aircraft,equipping them for the flight inspection mission. These special mission aircraft will be owned and operated by the Airports Authority of India and based in Delhi. Aerodata is a privately owned company having its base at Braunschweig-Wolfsburg Airport in Germany. Under its Flight Inspection System it provides AeroFIS for the inspection of all NAVAids and flight procedures that need calibration or validation. At the occasion, Bob Gibbs, vice president, Special Mission Sales, Textron Aviation said, “With the selection of the King Air 360 to replace their existing King Air B300s, we are honored that Aerodata and the Airport Authority of India has continued confidence in the Beechcraft King Air to perform this critical flight inspection mission. The Airport Authority of India will use the aircraft for inspection and calibration of en-route and terminal navigation aids throughout India.” Hans J. Stahl, President & CEO, Aerodata said,“With the purchase of these additional two King Air aircraft we further our long-term, fruitful relationship with the Airports Authority of India. With the Beechcraft King Air 360, we have chosen a state-of-the-art aircraft, fully compliant to the high-level requirements of the end user and will install the latest flight inspection system – AeroFIS.” From left to right: Chris Bogaars, Sales Director – Special Missions, Textron Aviation, Mareile Langhorst, Director Flight Inspection Systems, Aerodata AG and Thorsten Heinke, Senior Program Manager, Aerodata AG. In Pix: (L-R) Chris Bogaars, Sales Director – Special Missions, Textron Aviation, Mareile Langhorst, Director Flight Inspection Systems, Aerodata AG and Thorsten Heinke, Senior Program Manager, Aerodata AG.

UAE, Dubai, 26 January 2022: The RoyalJet Group – the Abu Dhabi owned and operated private aviation has expanded its fleet with the acquisition of another Boeing Business Jet. The purchase transaction was completed recently and this pristine, low time aircraft is currently undergoing technological and communications upgrades in Basel, Switzerland. It is expected to enter into service with RoyalJet and be available for charter globally in April 2022. Rob DiCastri, CEO at RoyalJet said: “Despite the ongoing challenges presented by the pandemic, demand in the past 6 months has exceeded supply in our sector of the aviation industry and in our region. The overall health of the global private jet market has now been strong for an extended period of time, and growth is expected to continue.” “Fleet expansion, renewal and upgrade are integral elements of our ongoing customer experience transformation, allowing us to continue to provide an even more exceptional experience to our guests,” he added. This Boeing Business Jet boasts 23 passenger VVIP interior with a forward crew rest area for long journeys, an aft private master bedroom with private lavatory and shower, and a mid-cabin open plan VVIP lounge. It has been finished with state of the art materials and a custom configuration designed for functionality and maximum comfort and can sleep up to 12 in VVIP lie-flat seats and its queen sized bed.

Nagpur; August 19th: JetSetFleet Management Services IFSC Private, a leasing arm of JetSetGo Aviation, has become the first Indian leasing business to directly import an aircraft.The aircraft, a Hawker 800 XP, leased through GIFT City, IFSC was imported from the United Kingdom and towed into the MRO after landing at Nagpur airport. Parking and warehousing services were provided by Air India MRO. This aircraft was brought into the SEZ for the purpose of leasing, promoting MRO and offering other ancillary services in the region. This transaction is being hailed as the country’s first-ever after the Ministry of Finance established a framework for Aircraft Leasing and Tax SOPS were granted, to shift the leasing business from Ireland or other locations to Indian Territories. To lease out the aircraft, the Company is experimenting with a novel financing strategy wherein JetSetGo plans on using the ‘pay-as-you-go’ arrangement. Under this model, the Company gets compensated based on how much the aircraft flies. In addition to this, JetSetGo is also looking into revenue-sharing arrangements. Kanika Tekriwal, Founder & CEO, JetSetGo Aviation said, “With the import of the Hawker 800 XP, we are extremely proud to be the first Indian leasing company to bring an aircraft into the country directly. This is not just a big milestone for us as a business, but also a historic move for India’s aviation industry as a whole. We are thrilled to have been able to do this as it is a step forward towards putting India on the global aviation map and enabling many industry-firsts going forward. With this initiative, we want to ensure that the leasing of aircrafts becomes feasible in India. Furthermore, we are planning to bring in at least six aircrafts by the end of 2021-22, and by the end of 2022, we will also look at leasing planes to international locations.” The imported aircraft was provided a tax-free landing by the SEZ in Nagpur on Thursday, following which it was flown to Delhi to be delivered to Indo Pacific Aviation, which is an arm of JetSetGo.

26 July, 2021: Lindsey Oliver, Operations and Development Manager for the British Business General Aviation Association (BBGA) is moving into a new role as Director General.She will be responsible for the operational matters for the national trade body which promotes and supports business and general aviation in the UK, fostering a closer interface with the BBGA Board and the Association’s Working Groups. Lindsey has worked alongside CEO Marc Bailey, overseeing the running of the Association, since 2009. Much of her work has been involved in supporting members and reacting to and resolving both their and industry issues, as well as successfully managing various BBGA events. Her appointment is a key part of a new, collaborative and structured approach to running the BBGA, which will see each Board member undertaking defined roles, based on their area of expertise. Collectively, the Secretariat and Board are focused more than ever on building a strong industry for everyone. “I am delighted to see Lindsey take on this new Director General role, liaising closely with the Board,” said BBGA Chair Aoife O’Sullivan. “From a members’ perspective this will result in a more responsive association – tackling industry issues that really matter, with closer connections to both the BBGA Board and our important Working Groups.”

UAE, Abu Dhabi, 26July 2021: RoyalJet Bermuda, the wholly owned subsidiary of the Abu Dhabi owned and operated RoyalJet Group has been granted an Air Operator Certificate (AOC) by the Bermuda Civil Aviation Authority (BCAA).The granting of this certificate – the first AOC to be issued to the Group outside the UAE – allows RoyalJet Bermuda to conduct commercial operations on Bermuda registered aircraft managed by the company. The BCAA only grants an AOC to an operator which is fully competent to safely operate the types of aircraft specified in the certificate. In order to be issued this AOC, RoyalJet Bermuda satisfied all BCAA requirements, demonstrating previous conduct and experience, availability of equipment, organization structure, qualified staffing, and sufficient maintenance and other arrangements. “The process involved in being granted an AOC can be quite lengthy and there are multiple phases and criteria to be met. We at RoyalJet Group are proud to announce that our wholly owned subsidiary in Bermuda has been granted an AOC by the Bermuda Civil Aviation Authority. This is the Group’s first foreign AOC, and it expands our service offering to our existing customers while helping us continue our growth in the global market”, said Rob DiCastri, CEO, Royal Jet. “The first aircraft to be operated by RoyalJet Bermuda under this AOC will be a European based BBJ we’ve recently added to our fleet which was already Bermuda registered.This new addition marks an historic moment in our operations, as we are now managing this asset for a private owner and select charter customers”, he further added. With the addition of the European based BBJ, the RoyalJet Group now owns and/or operates ten Boeing Business Jets – by far the largest fleet of BBJs in the world.

21 July, 2021: ACC Aviation, the global aviation services group,reports positive growth in the second quarter of 2021, driven by US and UK Charter as well as steady growth in its consulting division. Charter volume in the US and UK was up 39% year on year. Highlights included an uptick in the use of corporate shuttles, across the USA, Europe, and Asia, from the manufacturing, transport and sports sectors. ACC Aviation has supported a number of corporations with regular programme flying. US domestic business travel continues to lead the recovery with encouraging booking levels through 2021 into early 2022. ACC Aviation’s consultancy arm fared well in Q2, with 1H revenues up 18% compared with the same period in 2020, and 33% up on 2019. With increased activity across aircraft disposal and acquisition, and sale-and-leaseback projects, the business is backing further expansion of its consulting division with its entry to Aviation Finance Advisory. ACC Aviation has appointed Viktor Berta as VP of Aviation Finance Advisory where he will be supporting new and existing clients in analysing financing and leasing arrangements, restructuring existing indebtedness, and sourcing new forms of financing. “The creation this month (July) of a dedicated Aviation Finance Advisory within ACC Aviation, led by Viktor Berta, ex Erste and DVB Bank, leaves us even better placed to support airlines, lessors, lenders and investors with their existing debt and financing options as they navigate through this uncertain climate,” commented ACC Aviation CEO Phil Mathews. Trading highlights for Q2: • Appointed by Congo Airways, the national carrier of Congo DRC, to arrange the financing of its orderbook for 4x Embraer E190/E195-E2 aircraft, including on sale and leaseback. • Arranged and advised on the acquisition one B737-300 for an undisclosed client in the CIS region. • Arranged and advised on the pre-purchase inspection of one B737-300 stored in Estonia. Consulting activities included: • Ongoing engagement by a state-backed financier to develop a business plan for a new regional airline in West Africa • Completion of several aircraft appraisals including a Dassault Falcon 50EX and an Airbus Helicopters EC130 T2 • Completion of a feasibility assessment for the launch of a new Middle East based helicopter touring business. • Completion of a feasibility assessment for an aircraft teardown and dismantling facility in North Africa. ACC summarises The ACC Aviation portfolio of services continues to evolve and will be further extended into Q3 and Q4 enabling the business to offer wider expertise to clients. This past quarter’s activity has exemplified the reach and breadth of its activity. The group has also grown its team in the US with multi-lingual team members helping to expand ACC Aviation’s footprint across Central and South America The market is improving, driven by US corporate travel, buoyed too by encouraging levels of ad hoc leisure charter to destinations like Mexico and the Caribbean, emphasising the pent-up demand for leisure travel. Charter opportunities will benefit hugely when the corridor finally opens between the USA and Europe, says Director of Charter Richard Smith. The UK has been challenging, but there are still many opportunities for specialist sector travel, he notes. ACC Aviation’s Consultancy arm sees an increased volume of aircraft transactions and financial restructuring, driven by the initial stages of market recovery. “Airlines who take this opportunity to restructure their indebtedness will be in a much better position post-recovery than those who have not, with the leasing/lending community starting to limit airlines’ prospects of renegotiation now that the market is starting to recover,” said Rob Watts, ACC Aviation Director of Consulting.