Business jet makers bullish on Indian market

Global business jet makers, both large-cabin, long-range jets and mid-cabin, short-haul aircraft, are betting big on the India market, courtesy the gross domestic product (GDP) growth and the demand from corporates for efficiency that business jets provide. "The Indian market has a vast long-term potential. There is demand for business jets both from major corporates and high-networth individuals. We are here to expose our brand and expand our business. We are optimistic about India, as we are worldwide," said Roger Sperry, regional senior vice-president (international sales), Gulfstream. Click here for Cloud Computing Also Read Related Stories News Now - Air India seeking higher compensation from Boeing - Bombardier bullish on Indian market - 'Unfriendly' airfare - US durable goods orders slump most in 3 years - Defence Min okays $1.5-bn aircraft deal for Navy - Navy's Tejas fighter revs for take-off Gulfstream, part of the Virginia-based, over $6-billion Aerospace Group, currently has 20 of its business jets (large-cabin and mid-sized) flying in India. It has an OEM (original equipment manufacturer) market share of 48% (141 aircraft) in large-cabin business jet space in the Asia-Pacific region. The company had so far sold 2,000 odd jets worldwide, of which 9% are flying in Apac. "The Indian MNCs are no different from those in the US or Europe. We, as a company, expanded our business outside of North America. We see a tremendous market here in India," Sperry said, adding that 70% of their sales came outside of North America. Gulfstream currently has an order backlog of $17.9 billion, to be delivered by 2017, of which 27% is from the Asia-Pacific region. It is lining up two new business jets – G650 and G280. which will be rolled out by the middle of this year. "The two new products are aimed at catering to the increasing demand for large-cabin, long-range jets. The flight testing for G650, for which we have already received 200 orders, has been accomplished and the pilot training is under way. The G280 mid-sized jet has received FAA’s provisional type certification on March 2, 2012. We will start customer deliveries of this long-range (3,600 nautical miles, non-stop) from the middle of this year," Sperry said. Dassault Aviation, too, is targetting the growing market in India, with its Falcon family of large-cabin, long-range business jets. About 20 Falcons are currently operating from airports in Delhi, Mumbai, Bangalore, Chennai, Pune and Hyderabad. "While 80% of our business comes from corporates and 10% from governments, worldwide, we are targetting only the MNCs in India. Several additional aircraft are on order for delivery to Indian customers over the next two years," said Gilles Gautier, vice-president (sales and marketing), Dassault Aviation. Dassault, which sold 1,950 business jets so far, currently has an order backlog of more than 100 aircraft, with the average delivery time being two years. Almost, half of the new aircraft orders are for its flagship Falcon 7X, the first business jet certified with a fully-digital flight control system. Dassault’s new business jet, code-named SMS, is currently under development and will enter the service early 2016. "We remain encouraged by the potential for long-term growth in business aviation in India. Business jets are now seen in the region as a powerful tool to enable quick and convenient access to customers within the country and worldwide. The dramatic growth of the economy and the experience of travelling on commercial airlines have all contributed to the expansion of the market over the last few years. You will see our new SMS family, too, flying in the country," he said. According to Nilesh Pattanayak, managing director (South Asia), Bombardier, the growth in the business sector in India is driven by corporates who use the jets to ferry between major metros and Tier-II and Tier-III locations. The Canadian manufacturer of commercial aircraft and business jets has forecast that the Asia-Pacific region, including China, will take delivery of about 4,000 aircraft in the 20-to 149-seat category over the next 20 years, of which 1,300 will be in India Bombardier currently has 30 aircraft flying in the Indian skies. Pattanayak said the company had an order for 15 jets from SpiceJet, of which seven had already been delivered and eight would be delivered this year. "Aviation has become a mainstream in India, and Tier-II and Tier-III cities are set to stimulate this growth. Strong GDP growth, and growing corporate wealth are strong indicators of a strong market for business jets in India. We already have a regional support office in Mumbai and a spares facility in Hyderabad. As the fleet grows, we will further invest in the country. For us, the Indian market is very bullish and we are here to stay," Pattanayak said.