Private jet travel surges after two-year lull on resilient economy

Private jet and helicopter activity jumped 18.2% on year to 106,300 movements in the April-August period this fiscal, according to data sourced from the Airports Authority of India (AAI). That’s close to the record 110,800 movements during the same period in 2021, when India’s wealthy opted for charters over premium classes of commercial flights to avoid contracting the coronavirus. This spike was followed by two consecutive years of decline in 2022 and 2023.

“India is in demand and that is fuelling this growth--multiple top executives of global companies are flying in their private jets to India from all parts of the world to Delhi, Mumbai, Chennai, Bengaluru and Ahmedabad," said Santosh Sharma, founder of Bookmyjet, an online platform for booking business jets. “Many of them are also taking business jets in the domestic sector for some leisure travel—say flying to Agra."

According to Sharma, corporates flying would be contributing about 70% of the increase in demand for charters, followed by other factors including election-related flying.

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Higher business travel mirrors investor and business interest in the resilient Indian economy amid global uncertainties. The nation is also offering incentives to boost local manufacturing of everything from solar panels and electrolysers to semiconductors. And global and local executives from the manufacturing and technology to software services sectors criss-crossing the country to evaluate opportunities and strike deals.

“India continues to emerge as a critical player in the global economy, attracting significant interest from multinational corporations, who rely on private aviation to navigate India's diverse business landscape, particularly when accessing tier 2 and tier 3 cities," said Kanika Tekriwal, founder and chief executive officer of JetSetGo, a private jet management company.

“Domestic companies, particularly in the startup ecosystem and various other fast-growing sectors, are increasingly turning to private aviation to support their expansion strategies…" Tekriwal said. “The result has been a noticeable uptick in demand for private jet services from Indian businesses, supporting their need for agility in an increasingly competitive environment."

Bookmyjet and JetSetGo didn’t disclose the names of companies or clients who opted for their services.

There are about 130 India-registered private aircraft and a similar number of helicopters. Top business jet operators include VSR Ventures, Air Charter Services and Reliance Transport & Travels. Several estimates suggest India's business jet market is expected to grow at a compound annual growth rate of 6.70% between 2024 and 2032.

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As demand for business flying rose, the airport in Delhi opened a dedicated terminal for flights by business jets. Several other airports provide exclusive lounges and security check-in areas to passengers flying private jets.

While the world looks for alternatives to China, global aviation companies expect India to gain. About 100 executives from 60 French companies under GIFAS—French Aerospace Industries Association--and led by Airbus CEO Guillaume Faury are in Delhi meeting Indian counterparts for possible alliances.

Meanwhile, Indian private jet services providers predict the growth to continue during the rest of the 2024, traditionally the peak travel season.

“Historically, this period has always seen heightened activity, particularly in sectors where time-sensitive travel is critical," Tekriwal said. This year, she said, corporates trying to close deals, leisure international travel and domestic travel to smaller cities is expected to drive demand.

JetSetGo has already seen a 15% increase in corporate bookings compared to last year, indicating that executives rely more on private charters to manage their multi-city and international travel.

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