Supply issues emerge as demand increases for pvt jets
NEW DELHI : A surge in demand has left private charter and business aviation companies struggling to organize planes for their customers, with most foreign leasing companies reluctant to donate planes to Indian operators. A growing number of well-off Indians are opting for private jets ahead of the holiday season for vacations and other travel plans amid the pandemic easing and travel restrictions, especially on international destinations.
âMost leasing companies, especially in the United States and Europe, are afraid of leasing their planes to non-scheduled Indian carriers (such as private charters and business airlines) and want to huge financial guarantees for such leases after their experiences with Indian companies in default of leases. in the past, âsaid Kanika Tekriwal, Founder and Managing Director of private jet aggregator JetSetGo Aviation Services Pvt. Ltd.
Most of the planes used by private charters and business aviation companies are owned by the company and only a few are on operating leases. In comparison, most aircraft operated by commercial airlines are often leased because the operators prefer to transfer the risk of ownership to lessors. A growing number of business aviation companies are now looking to switch to operating leases to quickly expand their fleets and increase capacity to take advantage of increased demand.
Owning an aircraft is not only expensive, with owners having to bear the depreciation costs, but it also takes time for the aircraft to be delivered after ordering, said an aviation consultant from a large corporation. council, who did not wish to be named.
Rental companies in the United States and Europe are very skeptical about leasing their planes to non-scheduled Indian operators, said Sanjay Julka, technical general manager of Club One Air, one of India’s leading operators. charter planes. “However, most of these companies are unaware that the regulations have changed in the past two years and it is now easier for lessors to deregister their planes and take them back,” Julka said, adding that obtaining of operating leases abroad is not a problem with scheduled carriers. because they have a strong rental structure in place.
Meanwhile, private charter bookings have resumed ahead of the holiday season. âWith the ease of travel restrictions in various international destinations, more and more travelers are feeling comfortable booking flights 30 to 45 days in advance of travel date. Requests from parents of students studying abroad are also pouring in, âsaid Tekriwal of JetSetGo.
The private jet aggregator expects demand for private jets to grow at least 30% this year. âAt the national level, it has more or less picked up to a large extent. However, due to uncertainties regarding international travel, we are currently seeing requested travel bookings for selected locations like Maldives, Dubai, Sri Lanka, Ukraine, Russia and some European countries, internationally. Tekriwal said.
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