Helicopter operators rake in moolah in election season, make between Rs 350-400 cr as June 4 nears

As the campaign for the Lok Sabha election nears its end, with the last phase of polling on June 1, helicopter operators have made the highest-ever earnings of around Rs 350-400 crore during the ongoing election season.   

Generally, election season is hectic for helicopter operators and it was more intensified with a huge jump in demand pushing the chartering rates up to 50%. The helicopters are hired on an hourly basis.

The price for a single-engine helicopter like BEL 407, with seating capacity of 6-7, increased to Rs 1.3-1.5 lakh per hour during elections. A notable cost increment was seen in twin-engine helicopters such as Augusta AW109 and H145 Airbus helicopters with a capacity of 7-8 with hourly rental touching Rs 2.3-3 lakh.

There are limited twin-engine helicopters and they are the top choice for VVIPs keeping in mind stability, safety, and comfort. The third configuration includes the 15-seater AgustaWestland, with only 3 available, and has a rental of Rs 4 lakh onwards.

Captain Uday Geli, President (Western region), Rotary Wing Society of India (RWSI), says there are about 165-170 Non-Scheduled Operators (NSOPs) and approximately 30-35 are twin engines. NSOPs are entities that do not have a particular fixed schedule and fly whenever there is a requirement.

“Helicopter operators are charging 40-50% more, compared to routine hiring as demand is fairly heavy during the elections. In the 2019 Lok Sabha elections, they charged 20-30% more. This year, the demand has been much higher and are also coming from parties at the state level, while the number of helicopters has not increased,” Geli told Business Today.

Geli says going by a conservative approach, the total business of helicopter operators during this election could be around Rs 350-400 crore.
RWSI is a not-for-profit professional society for the growth of the civil & military helicopter industry in India. It has 189 corporate members (including 90% of helicopter operators).

A private helicopter operator said that his machines, especially twin engines, were booked 4-6 months in advance and they had to turn down some last-minute requests from individual MPs wanting to hire helicopters. “We got a few requests by individual MPs wanting to hire single-engine helicopters before polling in their constituency,” said the Mumbai-based operator.  

How do helicopter operators make big money?

During elections, these operators sign hiring contracts for longer periods like 45-60 days, especially with parties like BJP and Congress which have a presence in multiple states. The two national parties secure the hiring much in advance.

“Where they (operators) make money is that the political parties sign up for longer contracts between 45-60 days and minimum guaranteed hours during this period which is 2.5-3 hours per day. If somebody hires for 60 days, then the operator gets 180 hours of flying, whether they fly or not, the party has to pay. The operators demand 30 days money in advance and as they get closer they ask for balance money,” explains Geli.

The top three biggest helicopter operators--Pawan Hans, Heligo Charters, and Global Vectra Helicorp Limited (GVHL) have 13-15 machines among themselves for election hiring. There are smaller companies which rent out 2-4 machines. Some of the single-engine machine contracts withdrew from the campaign season by the first week of May because of the commencing of the Char Dham Yatra in Uttarakhand.

Helicopter economics

Per calculation, a twin-engine 8-seater helicopter charges Rs 3 lakh per hour and for 180 hours, it would have fetched Rs 4-5 crore per helicopter. If an operator has 4-5 helicopters, the earnings will be Rs 20-25 crores in just two months.

“This is almost double what they would earn in routine hiring. These helicopters clock 40-45 hours per month at a price 40-50% lower than what is being charged during election times,” adds Geli.   

A new trend noticed by the industry is that besides two major parties – the BJP and the Congress – political parties at the state level were looking for more helicopters. According to sources, West Bengal hired five helicopters, a mix of twin and single-engine ones for campaigning.
Samajwadi Party was hunting for more machines amid elections. Political parties with single state presence, hire one helicopter for the election season, said an industry player.    

Going by the audited accounts for 2019-20 submitted to the Election Commission of India (ECI), the BJP incurred expenses totaling more than Rs 250 crore on aircraft/helicopters and the Congress’ election traveling expenses (did not share separately for helicopter) in 2019-20 stood at over Rs 126 crore.