CIVIL BUSINESS AVIATION
Business aircraft makers can hope attitudes will change as India Inc gets more comfortable with ‘BizAv’
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a film/TV crew and equipment to a PROPHESY GAINAir Marshal V.K. Bhatia shooting locale/covering an imporING GROUND GLOBALLY is that tant happening event. One could just be trying to move one’s family from the 21st century say, Kolkata to Bangalore as quickly belongs to Asia. and comfortably after a change in What it actually refers to is the growing economic pros- assignment requiring relocation. Without air charter travel perity in the Asian region. With China one wouldn’t have the freedom to organise trips which are registering double-digit growth in its GDP year after year built around one’s needs. The only dilemma is, should one and India close on its heels, the two biggest countries in the splurge on air charter services for this reason alone when Asian region are transforming into economic power hous- scheduled airlines services provide a cheaper solution? es. China is soon going to be the second biggest economy in There are many other factors to ponder over. Owner of one the biggest business aviation and air charthe world after the US and India is seen inching towards the third spot with predictions that it would overtake Japan in ter services company, the NetJets and by far the richest due course of time. When one looks at the Asian landmass man in the world Warren Buffet bought his first business jet as a whole, stretching from the Arabian Peninsula in the when he was merely a multi-millionaire and immediately west, to Southern Asia and through South-East Asian coun- christened it ‘The Indefensible’, fully aware that the whole tries on to the Far East including Japan; the overall picture idea of a corporate airplane with associate costs would appears to be positive and full of promises. The Asian re- surely invite the wrath of the shareholders at the annual gion is throwing up more companies than ever before to be general meeting. The latest Buffet purchase, a Gulfstream, counted in the global top bracket such as Fortune 500. Sim- has a new name. It is called ‘The Indispensable’. The now ilarly, the number of high-net worth individuals (HNWIs) multi-billionaire believes the use of the business jet played in the Asian region is increasing exponentially by the day. a key role in bringing him to the super league of the rich Globalisation of businesses has also meant much greater and the famous. What might have been seen earlier as a requirement of air travel. While this has generated a spurt luxury toy has now come to be regarded as a vital busiin the civil aviation business which is ness tool as it saves time and boosts prowitnessing a much higher growth rate ductivity. The security element so cruelly Without air charter in Asia than the rest of the world, it has highlighted by the terrorist acts of 9/11 travel one wouldn’t also given a fillip to the business aviation in the US has added another dimension sector to fulfill the travel needs of the in favour of business/private air travel. have the freedom to corporate houses and the HNWIs. If the There are a large number of corporate organise trips which civil airlines business is growing fast, the houses who would not like to risk their are built around business aviation including air charter high-value executives to the possible one’s needs.The only terrorist acts in the air. The same is apservices are growing even faster. How does air charter differ from aviplicable to other high-value individuals. dilemma is, should Private jets may have the appearance of ation that is scheduled? The answer is: one splurge on air being affluent but these are being used in many ways. But from a user’s point charter services for by lots of people. of view the three key factors are flexthis reason alone ibility, efficiency and, of course, privacy. when scheduled One might need charter services anyCORPORATE AVIATION CATCHES ON time. For example, one could be a corIf the terrorists achieved one thing in the airlines services porate level travel planner trying to get a wake of the 9/11 it was to tear down the provide a cheaper group of senior executives from Delhi to barrier that led many industrialists and solution? Mumbai safely and with little downtime. corporations – particularly in the West Or, one might need to shift a seriously – to resist the strong argument to make ill patient from one hospital to another. use of business and corporate aviation Or, one might be in charge of moving services. With growing affluence in the Issue 4 • 2008
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4/28/08 4:52:48 PM