Fleet expansion planned
Competition in India business aviation market is fragmented with about 111 non-scheduled operators providing charter services, ground handling, aircrafts maintenance, training academies, MRO and other facilities, according to an industry report by ResearchAndMarkets.
Each company is trying to expand its fleet size, regional presence and operational services to capture higher market share, said the “India Business Aviation Market Outlook to 2030 – by Revenue Stream, by Fleet Type and by Fleet Distribution” report.
But major challenges faced by the companies include infrastructural limitations, stringent regulations, high taxation, high operating costs and preference to scheduled airlines, said the report released 2 May 2019.
In financial year 2018, Reliance Commercial Dealers Limited, Reliance Transport and Travels, Poonawalla Aviation and Air Charter Aviation have been some of the major players in terms of fleet size. Global Vectra Hellicorp, Pawan Hans and Himalayan Heli are the main operators in the helicopter sector.
In terms of revenue, Reliance Commercial dealers, Air Charter Aviation, AR Aviation and Orbit Aviation have led the market. Delhi and Mumbai are the two dominant catchment areas.
The industry will benefit from the development of airports, manufacturing sector, oil and gas sector, tourism, air ambulance and pilgrimage sector.
It would also gain from the government liberalizations, connectivity schemes like UDAN RCS, the increase in High Net worth Individuals (HNIs) in India will support the growth of the business aviation market.
Moreover, addition of secondary airports in Mumbai & Delhi, up-gradation of existing regional airport under the RCS scheme, changes in aircraft leasing & import regulations and favorable regulations for aircraft management companies would be other growth opportunities.
Use of business aviation aircrafts and helicopters in fields whose potential has not yet been utilized such as seaplanes, aerial surveys, air ambulance, managing traffic, law enforcement and others are expected to open-up and provide boast to the revenue segments.
The industry has experienced a small positive growth rate in financial year 2018 primarily because of an increase in the number of HNI’s and diversification of fleet size, said the report. fiinews.com