Private Jet Usage Has Increased Among The Wealthy

Around two years back a Tata Group business jet took off from Mumbai for Delhi carrying Tata Sons chairman N Chandrasekharan in it.

But it was not just another quick private flight to Delhi. Chandra as he is fondly called, was heading to the capital on January 27th to take over something that had once belonged to the group - Air India.
 

After meeting Prime Minister Narendra Modi, Chandra happily took over the airline from its then-chairman Vikram Dev Dutt creating history once again. 
 

Chandra could have flown Air India itself, which he has always been flying right from his days as the former head of software major TCS, but he probably took the business jet also because it has become popular for high net worth individuals to take a safer mode of traveling post the pandemic of 2020.
 

People who operate these business jets say many who started taking to business jets during the pandemic have not only stayed with this mode of travel but have only increased their sorties.
 

An official who runs such jets said they have noticed another shift. While earlier business jet hiring used to dip in the summer season that is no more the case. The dip was largely seen because, during that time, schools used to shut down in north India, and many HNIs flew off to Europe or the US with their friends and family.
 

Now they want to travel not just domestically on business jets but also to Dubai, and Maldives, and are even fine taking one-stop (as most business jets have limited range) to London.
 

To be sure business jets don’t come cheap. While a Delhi-Mumbai business class ticket can cost you Rs 25,000 one way the same flight on a business jet will take around Rs 21 lakh for a return trip on a 12-seater plane like the Falcon.
 

Business jets also charge you for a two-and-fro trip even though you may be planning on staying back the night at your destination.
 

The current going rate for business jet flights is around Rs 3.5 lakh to 5 lakh an hour depending on the trip, schedule, etc. There are other administrative costs to be paid as well.
 

For a trip to Dubai, the operators could charge you as much as Rs 45 lakh while a London sortie could come for Rs 1 crore.
 

“Dubai and London are really popular, most of the HNIs seem to be having a second home there,” a person who interacts with them said adding, “Maldives was also very sought after during Covid but has taken a backseat because of the recent controversy with India.”
 

The business jet fleet in India has grown 0.5% CAGR between 2011 and 2020 rising from 131 to 145 but then going to around 137 as the pandemic struck. Nearly half of these are so-called heavy jets (like the Falcon 900XP). Another 30% are mid-size jets like Hawker 900XP while light jets and corporate jets like Citation M2 have a 20% share of the Indian market.
 

Heavy jets and bizliners have higher operating costs and hourly costs per passenger than turboprops and mid-sized and light jets but heavy jets and bizliners have a higher flying range, speed, and greater cabin space for passenger convenience and comfort.
 

India's business jet fleet is expected to grow to around 200 from the current levels by 2030. Business jet prices have also shot through the roof globally post the pandemic because of the increased demand as also because of supply chain issues that have dented their manufacturing.
 

Still, the rise of this so-called “private flying” is also visible from the launch of India’s first – and jazzy - FBO or fixed-base operator at Delhi Airport in late 2020. The 550-sq-m terminal, which was sanctioned in 2016, and its hangars were built exclusively to handle business jets at around $7 million. It can handle as many as 100 flights a day.
 

This exclusive haunt for business jet travellers has a common lounge that can accommodate up to 50 people, a crew lounge, shower facilities, and amenities such as a food and beverage counter, besides a small retail area with duty-free shopping. There is also a 2,600-sq-m parking area which can accommodate 50 vehicles while fifty-five aircraft can be parked on the 65,000-sq-m apron.
 

“The opening of the FBO has also led to a surge in interest because people don’t have to walk through the long terminals but quickly get out of their car and aircraft is right there almost in front of them and then they leave for their city,” one of the officials at another business jet operator said.
 

Not to be left behind Gautam Adani-led Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) has also upgraded its business jet terminal in 2022. The terminal is capable of handling over 50 passengers every hour for a quick check-in and has specially trained staff to receive passengers around the clock. There is also a luxurious lounge with a stylish bar, and a buffet serving global cuisines. The terminal also provides butler service for its guests who can book meeting and conference room facilities with state-of-the-art audio and video aids. 
 

Clearly with more disposable incomes and a growing list of millionaires more and more Indians will be taking off on their private flights avoiding the increasingly chaotic airport terminals.

Just like Chandra did to get back Tata Group's crown jewel Air India.