In a candid interview,Mr. Rohit Kapur, President of Sales,Asia Pacific, JetHQ briefs Vishal Kashyap, Managing Editor, Aviation World about the current status of Business Aviation in India, the projections and the much talked about fractional ownership. Excerpts:
Q: Kindly brief us about JetHQ and its business presence?
A: Jet HQ is a dedicated global aircraft brokerage company with a worldwide presence. Incorporated in 2012 in Dubai, it is now headquartered in the USA, with its international office in Dubai. We specialize in assisting our clients for sale and acquisition of aircraft from the pre-owned market. With approximately 40 employees globally, we have a presence in the US, Latin America, Europe, Africa, Middle East, India and Asia Pacific We also have an in-house legal and market analytics team to assist you clients with their needs under one roof. Though we specialize in business jets of all categories, Jet HQ is also active in the sale of helicopter, turbo-props, trainer aircraft and airliners/cargo aircraft, if there is a need by our clients. Our vast global network with aircraft financers, ground handling companies, aircraft management companies, aircraft insurers etc. goes a long way and helping us to provide a holistic solution for aircraft ownership to our clients.
Q: How do you see the evolution of Business Jet demand in Asia specially India in the last few years?
A: Business aircraft demand in India, as in the rest of the world has seen a tremendous growth in post Covid time. In fact, the demand for private aircraft started spiking during Covid, and has steadily increased after that, with 2022 and 2023 seeing very high demand for private aircraft. The trend continues in 2024, Most OEMS have struggled to keep pace with the supply chain issues due to the disruption caused by Covid, and lead times for new aircraft have reached an all-time high of two years or more. In such a scenario, the demands for pre-owned aircraft have spiked, with the pre-owned aircraft inventory seeing an all-time low in the past few years. This is a global phenomenon. Maximum transactions have taken place in the US, with similar trends in the rest of the world, including Asia and India.
Q: What’s the current Business Jet Market size of Asia and what’s the projection for next 5-10 years?
A: As per a recent market report published by Asia Sky Group, the Business Jet fleet in Asia stands at 1154 at the end of 2023, which has seen a 0.2% increase from 2022, after seeing a decline in 2021 and 2022, mainly due to decrease of aircraft from Mainland China. The global average growth of business jets is predicted to be 4.4% for the next five years, as per the Global Jet Capital report.
Q: In terms of aircraft type, which category is mostly preferred by Indian operators? Any average comparison you would like to mention with other growing market?
A: The demand for small to mid-size aircraft is quite high in India, especially in the charter segment. There is also a demand for helicopters and turbo-props in this segment. For users in the private category, especially the corporate, the demand is higher for mid-size to large business jets, and also larger twin-engine helicopters. This is a global trend. However, in the US, Europe and China, there have been a number of aircraft charter operators who provide a service with large cabin, long range jets, something which has not yet picked up in the Indian market, where charter operators are mainly catering to the domestic charters.
Q: How do you see GIFT City as really transforming the leasing process of aircraft in India?
A: Though a welcome step, GIFT city is still work in progress, and a number of issues are being addressed by the government. It is a good concept to facilitate Indian aircraft operators, especially the airlines. Since I am not an expert on this subject, this is best answered by the experts dealing in GIFT city matters.
Q:Your views on Fractional ownership in India. How do you see it in terms of ease as well as challenges?
A: Fractional ownership is well-established way of aircraft ownership in the US and Europe. It allows discerning owners to own a fraction of an aircraft, along with other people, and be available for their use, when they need it. This is very helpful for the entry level buyers for aircraft, who have limited use, but still want to fly privately and do not want to be faced with the uncertainty of looking for aircraft to charter. The aircraft management companies run the program on behalf of the fractional owners, so they are not burdened with complex operational and safety issues. This is a welcome step in India, and is long overdue. It requires a synergy between the operational and financial regulation due to the implications of part ownership. I am given to understand the process is well-underway, and we shall soon see the implementation of fractional ownership in India. We welcome it.
