Kyle Patel
In recent years, business aviation in India has been on a slow upward trajectory but is still growing fast. In 2023, according to recent reports, India had the largest fleet of charter aircraft in Asia, dominated by large and mid-size jets. There were 139 business jets in 2018, which has now risen to 151. The most popular types are the Cessna Citation XLS, the Beechcraft Hawker 800XP/900XP, the Embraer 600/650, and the Dassault Falcon 2000. The Bombardier Global 6000 and Gulfstream G650 are newcomers to the region.
Both business aviation and general aviation are rising due to the government in India working on their vision of improving air connectivity and increasing tourism to India. The number of business jets is expected to grow year on year by 10%. Most private aircraft are bought by companies or individuals instead of leased or financed. As in the rest of the world, post-pandemic, the need for private jets has increased and outstripped demand, and India is no exception.
Private aviation is driven by urbanisation, the rise of UHNWIs, technology, and the need for greater air connectivity. Tourism, healthcare, and e-commerce are growing industries in the region and are supported by government initiatives. Indeed, Delhi and Mumbai have the most need for private aviation due to their increasing business infrastructure, renowned medical centres, and wealth.
Mordor Intelligence reports that the Indian aviation market’s overall size is estimated at $13.89 billion in 2024. This is expected to rise to $26.08 billion by 2030, with a growing CAGR of 11.08% for the forecast period of 2024 to 2030.
In 2023, India had the busiest Asian market for business jet activity, and WingX data shows that business jet movements were up 21% in the previous year. This is interesting to note, as the report also shows that movements are down 4% globally, so it is clear that India’s growth in the market is bucking the trend. There is a rising demand from prospective buyers in the region, with most interest in the mid-size and large business jets categories.
Challenges and opportunities to fuel growth
Although the business aviation market is definitely on the up, some challenges remain. To help fuel the growth we are seeing, the industry needs a better approach to regulation and suitable investment in its infrastructure. Another challenge is changing the concept of private jets. While they can be seen as expensive luxury and extravagant, for businesses and executives, they are essential to business and life; they value time over money.
The government hopes to address some of the constraints in the country’s infrastructure and has pledged to invest $12 billion by 2025 to modernize and build new airports. Although there has been some improvement, the country still needs to catch up when accommodating private jets. Recently, a new private jet terminal was opened in Hyderabad, which follows similar terminals in Cochin, Delhi, Mumbai, and Ahmedabad that have been built in the last few years.
The aviation industry in the region lacks skilled labor, which could be tackled by providing dedicated training programs and eventually attracting manufacturers to the region. Bureaucracy and regulations tend to hold private aviation back but easing rules and reducing fuel taxes will also help marshal growth. Simplifying customs and immigration processes will also help.
Furthermore, fractional aircraft ownership lacks a policy in India, and business and operations licenses can also be difficult to attain. Policies in aviation can be revised to improve matters. The Ministry of Civil Aviation does plan to revitalize the business aviation sector (which has been subject to heavy taxation), and we are starting to see evidence of this.
Aviation’s potential behind growing economy
India remains the world’s fastest-growing economy, with a GDP of 7.8%, and is the seventh largest nation. India has a population that includes 13,300 UHNWIs and over 700,000 millionaires. The number of UHNWIs in India is expected to rise by five times to 9.1 million households by 2030, according to a report from PRICE. This will no doubt introduce many new users to business aviation. With more demand, prices will decrease, and the prospect of owning or leasing a private jet will be more attainable and attractive to business executives and UHNWIs.
Airlines are ordering aircraft in huge numbers, driven by economic prospects in the region, and demand for business jets will follow with economic growth. The potential in private aviation and the demand for exclusive experiences has been relatively untapped and offers many opportunities. There is still a way to go, but the potential in private aviation is clear and should surely flourish.
With a rise in interest in ownership, increased business jet activity, and rising numbers of UHNWIs, there is certainly the potential to double the number of private jets in India in just a few short years.
Bitlux delivers various services across the air charter industry, but Executive Travel is closest to heart. Whether you are flying for business or leisure, Bitlux provides a top-tier private jet service that actively exceeds expectations.
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