At the onset of India’s premier exhibition and air show, “Wings India 2024,” Gp. Capt. RK Bali (Retd.), Managing Director of the Business Air Operator Association (BAOA), engages in an exclusive interview with Vishal Kashyap on the issues within the GA/BA industry. Here are the key excerpts:
*Current Business Aviation Scenario in India:*
Regarding the current business aviation scenario, the industry is experiencing the most favorable times due to economic growth and the proactive support from the government. Previously, during the beginning of this century, there was unplanned growth driven by increased business activities and related need to possess aircraft for efficiently running the business thus, leading to purchasing of aircraft without a clear understanding of their optimum business utility. Presently, there is a growing awareness of how to align business needs with aircraft use. Although the number of aircraft has remained stagnant, around 200 helicopters and 300 small aircraft, there is a slow but evident consolidation in the industry in terms of type of aircraft best suited for growing business needs. The number of Non-Scheduled Operators (NSOPs) has decreased from a peak of 139 in 2010 to about 99-100, showcasing a trend toward consolidation rather than mere ownership.
*Government’s Emphasis on Aviation Industry Growth:*
With the growth of airlines outpacing that of small aircraft due to affordability, the Indian government recognizes the need for a well-developed General/Business Aviation (GA/BA) sector. The government is aligning its plans to foster holistic growth in the domestic aviation industry by focusing on the growth of GA/BA. There’s a growing recognition within the government that growth of GA/BA is indispensable for safe and efficient aviation industry in the country and ensuring last-mile connectivity. Working in tandem with the government, BAOA, representing the GA/BA industry in the country, anticipates robust growth in the coming years.
*Challenges Hindering Business Aviation Growth:*
Acknowledging existing roadblocks, such as inadequate infrastructure specifically tailored for GA/BA, efforts are underway to address these issues. New airports are being planned with separate infrastructure for General/Business Aviation, including terminals. Despite a projected increase in demand, necessitated by the growth of startup companies, consolidation within the GA/BA industry is crucial to reducing the overall cost of owning and operating small aircraft.
*Average Age of Operational Business Jets in India:*
The average age of aircraft in India is comparable to that in the Far East, though not as much with the Middle East. Future developments in the GA/BA industry, including the introduction of new aircraft, are expected to bring down the average age. The emphasis remains on proper maintenance, airworthiness, and not solely on age for safe and efficient operations.
*Key Issues Raised by BAOA with Authorities:*
With infrastructural issues in the pipeline, attention is turning towards regulatory requirements. BAOA is advocating for proportionate regulations aligned with international standards, similar to those in the FAA but adapted to Indian conditions. Addressing issues related to taxation, including rationalisation of GST rates in the non-scheduled category, is also a priority. The association is actively collaborating with the Ministry of Finance and Ministry of Civil Aviation to resolve these challenges.
*BAOA’s Stance on Fractional Ownership:*
BAOA supports fractional ownership of business jets and has proposed its implementation in the non-scheduled category in the first phase of implementation. The government is working on a on a consolidated policy expected to allow fractional ownership, aligning with practices in other industries. This move aims to facilitate the growth of Business Aviation in India with numerous small owners sharing aircraft use, reducing overall costs. This,the fractional ownership, is a tested way of ensuring optimal growth of GA/BA industry across the globe, in all developed nations.
*Status of GIFT City in Supporting the Business Aviation Sector:*
Although GIFT City faced initial challenges, progress is expected over time. Full utilization of GIFT City for supporting the business aviation sector may take another 2-3 years. Efforts to secure financial support from Indian banks are underway, with individuals in the small aircraft industry exploring leasing through GIFT City.
This interview offers valuable insights into the current state and future trajectory of Business Aviation in India.
