As per the Directorate General of Civil Aviation (DGCA), the general aviation fleet in India comprises 800 small aircrafts and 300 helicopters. Most of these aircrafts are engaged in private charter, VIP flying, election flying, pilgrimage and offshore oil & gas operations.
The fillip provided by government incentives and favourable policies has accelerated the growth prospects of the industry. The Regional Connectivity Scheme (RCS), development of new airports under NABH Nirman initiative and emergence of new airlines have resulted in rapid capacity expansion to cater the demands of the people. The policy initiatives at GIFT City for leasing of aircraft have also opened newer channel for bringing in aircrafts in to the country. All of these have positioned India as the fastest growing aviation market in the world.
In terms of private charter, as per industry estimates 15% of ultra-wealthy individuals in India are already using private jets, which is projected to increase to 43% in the coming years. The number of ultra-wealth individuals has also grown considerably by 11 times over the last decade, India has the fifth highest number of ultra high net worth individuals (UNHWIs) with net worth of USD 30 million or more. People who have experienced the comfort, safety and convenience of charter flights are hooked on to the experience.
This fast-paced growth also spells exciting times for the support segments, like flight training organisations, air freight, ground handling and MRO firms. For example:
India requires 1500 new commercial pilots every year, while only about 400-600 commercial pilots graduate from the Indian flying schools. The flying schools have witnessed 25-30% increase in demand for training of pilots, engineers and cabin crews.
Presently, about 30% of India’s total trade is undertaken via airways, approximating to 3 million metric tonnes. This has the potential to reach 17 MMT by the year 2040.
The Indian MRO industry is slated to increase from USD 1.7 billion in 2021 to USD 4 billion in 2031. Besides availability of highly skilled talent and relative cost advantages in the country, this projected growth is underscored by the government’s intent to develop India as global MRO hub with release of new MRO Policy last year.
The demand for pre-owned and new aircrafts has picked up. This is due to increase in the prices of new aircrafts by 15%-20% and the typical lead times of 18 to 24 months. Most transactions are occurring in aircrafts priced below USD 10 million. There are several first-time buyers interested in purchasing a business aircraft for their travel needs and many have expressed an interest in fractional ownership. The Government is considering the guidelines for fractional ownership and is expected to roll them out soon.
With the infrastructure augmentation by the Government and attractive growth prospects, the general aviation industry in India is entering a new dawn of high growth.
We at Beyond Curve Consulting LLP are advising many clients in the aviation industry, including private charter, MRO service providers and a regional airline for strategizing their growth, sourcing and financing aircrafts and relevant industry partnerships in India and globally to support in their journey.
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