Keeping low realisation of business aviation potential despite Indian econmoy growing the fastest and general aviation witnessing over 20 per cent growth, Business Aircraft Operators Association (BAOA) plans to ask the Government to consider bringing down import duty on purchase of new aircraft under the non-commercial category and adoption of e-governance at the DGCA with simpler procedures to leapfrog the sector.
“We must get an integrated eco-system. Centre should consider bringing down import duty on purchase of new aircraft under the non-commercial category and there should be e-governance at the DGCA with simpler procedures,” said Business Aircraft Operators Association President Jayant Nadkarni.
“Growth of business aviation has decoupled with the growth of our GDP. Though our GDP is growing fastest at over 7 per cent and so does scheduled carriers at over 20 per cent, we remain much below our potential at 2 per cent,” he added.
The growth of business aviation in the country has seen only 2 per cent growth over the last five years and if long term action is not taken, it would have a relatively conservative fleet growth projections of about 7 per cent over a long period, a median between best case of 12 per cent and as is case today of 2 percent, said a report by Business Aircraft Operators Association (BAOA) along with its knowledge partner- Martin Consulting llC.
The report highlights how this sector makes the country more stable and secure, as employment and economic sustenance is provided to people through industries that are set up by businesses. It enhances economic development which goes on to benefit the common man and a resurgent India.
“Scheduled airlines are like bus and business operators are like taxi and they both help people. If there is a rethink on landing and parking charges along with above mentioned remedial measures, the sector has the potential to create a revolution in regional connectivity and economic benefits for the country,” added Nadkarni.
When asked about effect of Demonetisation of Rs 500 and Rs 1000 notes on business jet operators, he said “Cash crunch is affecting our operations and creating a lot of strain on us. We will tide over it but in charter aviation in business aviation when you go to small towns most of the payments are done in cash to the ATC, airport operator ETC/ This is because you do not know how much you have to pay,” said Business Aircraft Operators Association President Jayant Nadkarni.
He was also asked whether he had come across any instance of an his association member failing to operate the charter flight due to non-availability of cash, Nadkarnmi said, “It is quite possible that it might have happened. But the data is still coming in.”