Private jets are going from being an ultra-rich indulgence to a rich man's cab-hailing service. Well, almost

Earlier this year, high net-worth individual (HNI) Anurag Maheshwari (name changed), 43, decided to return to his hometown Kolkata from New Delhi. After booking their stuff with a road freighter, the Maheshwaris decided to travel by air. But there was a catch. Regulations for the transport of their pet Alsatian on a commercial flight were cumbersome. To their horror, they realised that the family pet would have to travel in a kennel in the aircraft’s cramped cargo hold. It was then that Maheshwari decided to charter a private aircraft.

In another part of the country, Bengaluru-based businessman Aarush Dalavayi (name changed), 47, was worried about not being able to make it to a wedding in the family of a key client in Goa. By the time he would get free on the day of the wedding, all flights to Goa would have left. It was then that he hired a private jet to not just attend the event but also return in time for his engagements the next day.

So, it’s not just the Ambanis, Adanis or CEOs of MNCs who are living the high life, literally. Maheshwari and Dalavayi are among the new breed of passengers who are embracing charter flight services, which have traditionally been associated with the uber rich.

A Convenient Matter

So, what do charter flights offer? Almost everything you can ask for, from a chauffeur-driven limousine to shuttle you to the airport to departing as per your requirements; no serpentine queues to greet you at the airport, and forget about the luggage limit. You can wander freely onboard, conduct a hen party, in-flight meetings, or celebrate any other special occasion, along with savouring many exotic dishes on the menu; everything is tailor-made per your taste!

The lavish bespoke menu includes exotic stuff such as Beluga caviar or Japanese sushi. For instance, while Club One Air has a sous chef to prepare delicacies, JetSetGo offers specialised meals after consulting with the passenger’s dietician. The latter also offers accessories from 100 thread-count Egyptian bedsheets and special Greek linen to personalised crockery, cushions and sleepwear. Moreover, the aircraft are put through a multi-stage sanitisation check for the passenger’s safety. The on-ground concierge also offers any assistance required by passengers in finding conveyance or hotel bookings.

From all your business needs to leisure requirements, charter services take care of everything with an extra layer of luxury. However, all these come at a cost. Unlike industrialists like Ratan Tata (Dassault Falcon 2000), Mukesh Ambani (Boeing Business Jet) and Adar Poonwalla (Airbus A320), it may not be feasible for many others to own or maintain a private jet. Especially when their prices range from $4.95 million to $170 million for aircraft like the Embraer Phenom 100 and the Boeing 767-33A ER, respectively.

And this is where chartering an aircraft makes sense. For instance, Blade India, a JV between Blade US and Hunch Ventures—that specialises in helicopter charters—charges Rs 1 lakh per hour on average. You are also required to pay for the return leg of the journey. The final fare is calculated based on the aircraft type, distance covered, the time taken and landing and parking charges. For example, the cost of a Delhi-Goa-Delhi and Mumbai-Delhi-Mumbai round trip currently works out to Rs 18-25 lakh and Rs 17-24 lakh, respectively, while international charters on routes like Delhi-Dubai-Delhi and Mumbai-Male-Mumbai could cost between `35-50 lakh and `38-54 lakh, respectively, for a same-day round trip.

Rising Demand

So, what is spurring this trend? The reason lies in the changes brought on by Covid-19. “When the first wave struck, a lot of people had their families stuck in different cities. They had this fear of using passenger flights because there wasn’t much clarity. So, they hired charters,” informs Kanika Tekriwal, CEO of JetSetGo, India’s first charter service aggregator.

Once the virus began to recede and international destinations opened up, people started visiting nearby destinations such as Dubai and the Maldives—marking the start of the ‘revenge travel’ season. Even as scheduled airlines have resumed all operations, the phobia of travelling on a commercial flight compels a lot of people to look for alternatives. “The trend of revenge travel is here. We have also seen an increase in demand from people who want to charter a craft to control their time,” says Amit Dutta, MD of Blade India, adding: “Today we are seeing requests coming from a much broader segment of society. Such passengers may not be chartering an aircraft every month but they are open to the concept of checking out the cost of a charter.” Companies BT spoke to for the story reported up to 100 per cent increase in queries for international trips after first-time travellers realised the convenience of using private jets for international travel.

These passengers are a mix of corporate clients, HNIs, celebrities, and anyone who can afford to fly in a private aircraft. The way business owners travel now after Covid-19 is giving wings to the growth of charter flights. “Earlier, they used to travel alone or with an official delegation. But now you often find them travelling with their families on business trips,” says Rajan Mehra, CEO of Club One Air.

However, the new clientele is dominated by a higher percentage of business executives, who were earlier flying first class. “The new class of passengers has also discovered the ready availability and flexibility offered by jets,” says Group Captain Rajesh Bali, MD of Business Aircraft Operators Association (BAOA). JetSetGo’s Tekriwal segregates it further: “Of the new charter flyers, around 70 per cent would not use them again, and the balance 30 per cent are those who could afford them before Covid-19, but were not using them.” So, the market size has increased. Club One Air, the country’s largest charter service provider, claims to have retained up to 50 per cent of the passengers added during the pandemic. Tekriwal also attributes this rise to shrinking business class seats in a market dominated by low-cost carriers. “The absence of business class seats on regular commercial flights may have also led to passengers mindful of their privacy to charter aircraft,” she says.

The UDAN-Regional Connectivity Scheme, which was launched in 2017 to connect remote areas, is also benefitting charter operations as regional airports have improved substantially, allowing charter flights to travel to the country’s interiors. “Smaller towns of India are throwing up consumers like never before,” says Club One Air’s Mehra.

Your Flying Machine

Very soon, you won’t have to be a Tata or an Ambani to own a private jet. Enthused by the growing market for charters, Group Captain Bali is working with BAOA members to offer fractional ownership of private aircraft. This will allow multiple owners to not only share the cost of purchasing an aircraft, but also the freedom to use it. Club One had tried to introduce the concept in 2006, but it didn’t take off then due to taxation and regulatory hurdles. But things are different now. “Fractional ownership is going to give a huge boost to business aviation as it will allow people outside of India Inc. to consider owning an aircraft,” says Bali.

As per aviation regulator DGCA, the 95 non-scheduled operator permit holders in India had a fleet of 330 charter aircraft as of April 2022. With consolidation happening, Group Captain Bali predicts “the number of operators may come down further”. However, “the number of private aircraft is bound to increase”.

“It was okay to travel by a Rolls-Royce or be seen with a $100,000 Birkin bag, but it was not okay to travel by a private jet. But that perception is slowly changing,” is how Tekriwal sums up the situation.

@manishpant22