Purpose: The objective of this paper is to examine the conceptual framework under which business and general aviation has developed globally and the roadmap for its growth in India. It traces the growth of business and general aviation in United States of America and its use by various businesses to enhance productivity. The paper also examines various initiatives taken by the Government of India in this regard. Methodology adopted for this paper was a combination of secondary research along with interviews with stake holders
The need to connect tier II and tier III cities through the air transportation network is seeing an avid interest in the growth of Business and General Aviation. International Civil Aviation Organisation has recently submitted its recommendations to chart out a road map for India General and Business aviation is at a nascent stage and suitable policy framework is needed for its growth and in ensuring that it becomes a force multiplier in India..
Man has always been fascinated by the birds flying in the sky and wanted to fly like a free bird too. This desire to explore the unexplored mystery is the cause for genesis of the aviation industry. From the beaches of Kitty Hawk to the stealth fighter of the day, the industry has grown by leaps and bounds. The First World War provided the forces necessary for propelling the industry forward as robust line of defense. Military aviation had its roots during these dark days while the need for faster transportation resulted in the civil aviation industry.
Across the world, aviation industry has been divided into defense and Civil. The International Civil Aviation Organization (ICAO) states that all civil aviation operations are divided into three categories: Commercial air transportation, General Aviation (GA) and Aerial work. (Sheehan, 2003)
The definition clause under Article 3 clause (i) of Regulation (EC) 216/2008 of the European Parliament points out that the term ‘Commercial operation’ means any operation of an aircraft, in return for remuneration or other valuable consideration, which is available to the public or, when not made available to the public, which is performed under a contract between an operator and a customer, where the latter has no control over the operator. . (Regulation 216, 2008)
Commercial air transport involves transporting passengers, cargo or mail for remuneration or hire. It may operate as per a published schedule or without a published schedule. The Scheduled operators over time have resulted in the growth of airlines while the non-scheduled tend to be part of General Aviation (GA).
Aerial work on the other hand relates to specialized services like agriculture, surveying, search and rescue, aerial advertisement etc.
The Growth Years
End of the First World War saw the growth of the "barnstormers". Pilots who had participated in the war, post their active defense service were the harbingers of GA industry; providing services ranging from crop dusting to firefighting. GA deals with private aircraft owners, aircrafts owned by companies, flying clubs, small taxi operators etc.
United States of America has been the home of GA and a number of practices and procedures have emerged and it is to be seen if the same standards and recommended practices (SARPs) can be transplanted in the emerging economies like India.
According to Allen, in the United States of America, the home of GA, It encompasses the manufacturing, operation, certification of any type of aircraft that has been issued a certificate of airworthiness (COA) by the Federal Aviation Administration (FAA), other than aircraft used for scheduled commercial air service (airlines) or operated by the U.S. military. (Allen, Blond, & Gellman, May 2006)
The Air Taxi Survey (FAA General Aviation and Air Taxi Activity Survey, 2004) has listed down a number of factors like air medical services, aerial observations, external load etc which have contributed to the growth of GA in the United States of America.
Versatility of GA can be seen from its usage in tourism, disaster relief, medical or emergency evacuation, pilgrimage or industrial usage in oil and gas, geological surveys, cleaning of transmission lines etc (2011). It provides basic training for a majority of new pilots and later GA act like as a feeder of pilots to scheduled operators. A special use of GA aircraft happens as part of Campaigning in a democracy like India.
GA is further categorized into Recreation, Personal and Business. Some people use an aircraft for recreational, sightseeing or sports purposes while others use it as a personal mode of transportation. (Sheehan, 2003)
National Business Aviation Association has defined Business Aviation as the use of any "General Aviation" aircraft for business purpose. As such Business Aviation is a part of GA that focuses on business use of airplanes and helicopters. (National Business Aviation Association, 2011)
The Annual Report of International Business Aviation Council (IBAC) elucidates that Business Aviation as that sector of aviation which concerns the operations or use of aircraft by companies for the carriage of passengers or goods as an aid to the conduct of their business, flown for purposes generally considered as not for public hire and piloted by individuals having, at the minimum, a valid commercial pilot license with an instrument rating. (IBAC Annual Report, 2010)
The diagram below depicts the relationship of Business Aviation with other branches of aviation.
Figure : The Business Aviation Context
Figure : The Business Aviation Context
The block diagram above depicts the relationship of Business Aviation with other branches of aviation.
The Business Aviation (BA) is further subdivided into the following
Business Aviation – Commercial
The commercial operation or use of aircraft by companies for the carriage of passenger or goods as an aid to the conduct of their business and the availability of the aircraft for whole aircraft charter, flown by a professional pilot(s) employed to fly the aircraft.
Business Aviation – Corporate
The non-commercial operation or use of aircraft by a company for the carriage of passengers or goods as an aid to the conduct of company business, flown by a professional pilot(s) employed to fly the aircraft.
Business Aviation – Owner Operated
The non-commercial operation is a use of aircraft by an individual for the carriage of passengers or goods as an aid to the conduct of his / her business.
Business Aviation—Fractional Ownership
The operation or use of aircraft operated by an entity for a group of owners who jointly hold minimum shares of aircraft operated by the entity. Fractional Ownership operations are normally non-commercial; however, the operation of the aircraft may be undertaken as a commercial operation in accordance with the air operator’s certificate (AOC) held by the entity.
Business Aviation: The Force Multiplier
Business Aviation is also considered as a catalyst for economic growth of the country. Businesses that use GA aircraft are said to gain competitive advantage, while communities gain job opportunities and access to the nation's extended air transportation system. It tends to contribute to growth of gross domestic product (GDP) directly and has a number of multiplier effects. It benefits the users of transportation services and the country's economy at large. It increases the efficiency and productivity of businesses by reducing travel time that would be required to drive or to use more congested commercial airports. Business / GA Aircrafts have emerged out as force multipliers.
The National Business Aviation Association (NBAA) of USA has studied how companies use their aircraft for business purposes. They found that customer visits, humanitarian flights, charter revenue flights, corporate shuttles, attracting and retaining key people are some of the ways of utilizing business aviation aircrafts. (business-aviation/uses/, 2011)
The Table-1 describes the various ways in which a business aircraft is utilized.
Table -1: Utilization of Business Aviation Aircraft
Key Employee Travel
Getting the right person in the right place at the right time
Bring Customers to you
Visit Customers on their turf
Scheduled Customer Service
Routine trips to service customer accounts
Emergency Customer Service
Rapid response trips to fix what is broken and " put out fires"
Humanitarian and Charitable Flights
Being a good Corporate Citizen; helping employees
Sales and Marketing Blitzes
Multiday/ Multicity sales trips covering a region or sales area
Charter Revenue Flights
Offering your aircraft for use by Charter Operator
Regularly outside the United States
Used to go directly to specific destinations; not just between airports
Transporting Management Teams to organization sites
Transporting Production or Engineering teams to critical work sites
Regularly scheduled flights between organization facilities or customer sites
Making Airline Connections
Making Airlines Connections, particularly international flights
Carry Priority Cargo
Spare Parts or Mail
Such as advertising shoots
For Goodwill/ Lobbying
Transporting elected officials or candidates; going to law makers
Mapping , Aerial surveys or inspections etc
Evaluating New Markets or sites
The Airborne Office
Working/ Conferring En route
Employees and their families
Attract and retain key people
A tool to facilitate work or get people home more nights
Maximize Employee Safety and Industrial Security
Better than airlines
It is to be noted that business aviation has not been defined under ICAO and is not included in the ICAO vocabulary. Business Aviation is represented worldwide through IBAC. The council has a permanent observer status at ICAO and is housed in the same building as of ICAO.
Although individuals or companies own the majority of business aircraft, business aviation can also use arrangements such as chartering, leasing, fractional ownership, time-sharing, interchange agreements, partnerships and aircraft management contracts. (Study on International General and Business Aviation access to Airports, 2005)
With India inching towards its rightful position in an interconnected world the time has come to focus on the Business Aviation. It is also important to understand the Regulatory, Operating and trading environment both from perspective of new as well as pre-owned aircraft. On the other hand, government policy in China and India remains effectively hostile to GA Activity. There are signs that both nations see advantages in opening up airspace and encouraging growth in GA Sector, but the movement is glacial (Royce, 2011)
US and India: A comparative assessment
Business Aviation is growing at a fast pace in India though in the United States during the later part of the first decade of the millennium, it showed a decline. United States expects that this decline would be compensated by growth internationally, particularly from countries like India and China. There is an imperative need to collaborate in this vital sector.
In United States, GA is an essential part of the transportation system and that is especially critical for individuals and businesses for both who need to travel and move goods quickly and efficiently in a just in time market. There are 320,000 GA airplanes operational worldwide; ranging from 2 seat training aircraft to international business jets to helicopters to others and nearly 228,000 of those 320,000 are operating in the USA. In USA, GA aircrafts fly almost 24 million hours and carry 166 million passengers annually. Over two-thirds of the hours flown by the GA aircraft are for business purposes.
A key point is that GA is the primary training ground for most commercial airline pilots. So GA clearly is a big contributor towards US economy. It supports 1.2 million jobs and over 115 billion dollars is contributed to US economy each year through this segment alone. And despite US economy turn down from 2008 till perhaps mid last year, GA manufacturing and delivered 7.9 billion dollars worth of aircraft in 2010. 62% of the manufacturing was tied to eventual exports from United States. GA is one of the few remaining domestic manufacturing industries that provided a trade surplus for US and US exports of civil aviation equipment and services comprise nearly 15% of exports to India. (Reinke, 2012)
India is the 9th biggest aviation market in the world and in terms of domestic traffic, the fourth largest in the world behind the US, China and Japan and yet India is one of the least penetrated markets in the world even lower than Sri Lanka, Pakistan and Nigeria.
The US Government, US Industry works together with the Government of India as well as the private sector in India and the US to develop faster opportunities in GA through government-to-government initiatives and public private partnership like US-India Aviation Corporation Program (ACP)
The U.S-India Aviation Cooperation Program (ACP), a public-private partnership between the U.S. Trade Development Agency (USTDA), the U.S. Federal Aviation Administration (FAA) and U.S. aviation companies, has been established in the year 2005, to provide a forum for unified communication between the Government of India and U.S. public and private sector entities in India.
The ACP is working mechanism through which Indian aviation sector officials can work with U.S. civil aviation representatives to highlight specific areas for technical cooperation. The ACP executive committee consists of both U.S. Government and US Industry (private sector) representatives, and its secretariat will function as the focal point for responding to Indian Government areas of interest i.e. aerospace and aviation sector by identifying appropriate training programs, Technology updates and other cooperative activities as well. The ACP secretariat will be responsible for managing and organizing the identified training and technical cooperation activities.
Keeping ACP working algorithms in mind, currently US trade missions are in the process of exploring aviation and airport infrastructure as a key opportunity. There are tremendous opportunities for partnerships in areas of technology, raw materials, development capabilities; international airworthiness certifications, developing skills and financing. There are various levels of engagement between the two countries
Ministry of Civil aviation (MoCA) and the Federal Aviation Authority (FAA) have a regularly scheduled Joint Aviation Steering Committee. Keeping in mind the growth aviation business in India, FAA also has a representative office in the in New Delhi.
There is also a homeland security dialogue and through this bilateral dialogue our Transportation Security Ministry interacts regularly with MoCA to exchange data and training methods to ensure aviation security.
Another strategic initiative is US-India strategic dialogue itself. A key deliverable of the India-US strategic dialogue held last June was the signing of the executive agreement portion of the Bilateral Aviation Safety agreement (BASA). BASA provides for reciprocal inspection and certification of aerospace products and allows for mutual recognition by DGCA and FAA, a big step forward in creating a more cost effective mechanism for procuring products in India and ensuring increased trade between the two countries.
Government-to-Government cooperation comes under the rubric of the High Technology Cooperation Group (HTCG). In 2010 the HTGC added a new sub-committee to deal with aviation infrastructure. .
Ways to simplify India’s flight clearances processes for GA aircraft, GA aircraft import approval processes, the Reserve Bank of India’s (RBI) currency restrictions and India’s accession on WTO’s Agreement on Trade on Civil Aircraft (ACTA) are the areas of cooperation between USA and India. (Reinke, US India Cooperation, 2012)
Joining WTO ACTA would lead to India’s elimination of tariffs on aircraft and aircrafts parts and go to further accelerate growth in this sector. It is not out of place to mention India’s budget proposal of March 16, 2012 mentions, "Import of aircraft parts as exempt from basic duty" as a right step.
Data in India on schedule airlines is available and data on non-scheduled and private jets, which constitute GA, is difficult to come by. The biggest challenge, which the Government of India is now facing because sector is predominantly liberalized, is to ensure that though there is lot of growth predicted, challenge is to ensure that the growth takes place in a safe and an orderly manner.
India is known as one of the fastest growing aviation markets in the world. With the liberalization the Indian aviation sector the industry has been gone through a transformation with the entry of the several privately owned full service airlines and as well as low cost airlines. Aviation business had faced two years of very difficult patch and now it has once again resumed its growth trajectory during the last year.
In terms of domestic passenger volume, India now ranks 4th after US, China and Japan. For the first time domestic travel in India has crossed the 60 million mark in the year 2011, which is a 17% markup of previous year’s figures. This market is expected to grow at around 10% annually to reach a level of 150-180 million passengers by 2020. (Bhushan, 2012)
In order to spur this growth, it would be essential to continue to give top priority to infrastructure, to support this growth and address important issues like taxation, input costs, security, regulation of monopolies, environment as well as issues related to liberalization.
GA is the new kid under the block and is a relatively new segment of the Indian industry. It facilitates emergency medical services, disaster management, offshore operations, scientific research and security as well as law enforcement. Major reason for the rise in demand for BA is that the aircraft are no longer seen in this country as a luxury but it as a tool for increase in growth and productivity. BA is also considered as a catalyst for the economic growth. Businesses that use BA are said to gain competitive advantage while the communities gain job opportunity and access to nation’s extended air transportation system. Maximum use of GA is seen in the chartered business in India, tourism as well as off-shore operations. BA in India is a niche market. Especially since it is relatively hassle free and has instant availability status. The value of additional benefits of private aircraft is that it can fly to destinations, which are not normally covered by the scheduled airlines and have access to smaller airstrips.
However, BA is experiencing a lot of formidable constraints. There are no exclusive guidelines for them. The factors that inhibit growth of B A are mainly lack of infrastructure and manpower as well as several procedural issues relating to government control.
According to the 2011 report, Centre for Asia Pacific Aviation(CAPA) had stated that India’s GA sector has tremendous opportunities and has projected that the industry could see new aircrafts sales that are business jets, helicopters, turboprops and piston engines of up to USD 12 billion over the next decade. By which time the fleet is expected to touch 2000 aircrafts. The report also estimates that the direct and indirect economic contribution of GA would be close to USD 4 billion per annum 2020. On the rotary wing side, the future of India looks very promising. In a rapidly growing economy increasing reliance on air transportation and diversified terrain are all pushing the Indian helicopter market to develop at a very fast pace. It is expected that the commercial sector of corporate and VIP transport will also grow rapidly. Another area of visible growth in India will be the oil and gas industry and in order to support exploration and development of new sources, there will be a need of longer-range helicopters and which ONGC and the Ministry of Petroleum is addressing. The field of emergency medical services as operated by helicopters is also emerging as a very important growth area. In terms of fixed wing business jets statistical studies indicate that generally they are more cost effective than commercial services and hence there is this potential.
There is an urgent need to increase safety awareness and compliance culture in B A. This is due to the fact the BA aircraft are more at risk due to the nature of flying, VVIP carriage, infrastructural issues as well as concerns of the Chief Executive Officers. There is a need to have close monitoring of their operations and DGCA is now gearing up with this end in view and has taken up an initiative in this regard through implementations of safety management system and their further operations. There is a need to equip and strengthen the aero industry base to cater to the growing aircraft operations but also strengthen maintenance infrastructure.
The following table depicts the growth of business aviation aircraft in India.
Figure 2: Aircraft Acquisition in India
It is important to note that the proportion of fixed wing aircrafts acquired between 2006 and 2010 is similar to that of rotary aircrafts.
Regional Air Transport System
The growth of Indian aviation has had many milestones filled with myriad of opportunities and challenges. A century after the start of aviation in India, we are again at a tipping point. A perusal of air transportation system indicates a bias towards the large commercial airlines. These airlines operating out of large airports and flying certain profitable routes tend to be poster boys of the Indian aviation industry
The merger of the domestic and international carriers, the financial crisis in Kingfisher, the dwindling yield per seat combined with GDP growth and growing aspirations of people has set the stage for growth of General and Business Aviation (GBA) along with new regional carriers.
When we examine the regional network we find that airport infrastructure, ATM infrastructure apart from valuable linkages with the local community are some of the crucial elements. It is not out of place to mention that Mr. Radhakrishna, Vice President at Reliance infrastructure during the seminar had lamented that inspite of operating the airports the lack of social infrastructure and linkages with the broader spectrum had become a constraint.
A comparison with United States of America would indicate that the work horse of aviation is General Aviation and regional airlines (Reinke, Report on General Aviation: Growth Opportunities and Challanges, 2012) . It is this network which generates value and results in large economic contribution to society, generates jobs and ensures national productivity.
In a testimony before the United States International trade Commission, Ed Bollen, president of NBAA stated that from creating business opportunities and global connectivity for America’s small towns and rural areas to supporting the nation’s productivity business aviation is an important economic engine creating jobs and Investments. He added that if you want to do business in Brazil, India, China and Russia, face to face communication is the need of the hour and business aircraft is just the right productivity tool. (Business Jet Aircraft Industry: Structure and Factors affecting Competitiveness, 2011)
It is very interesting to note that the Civil Aviation Minister, Mr Ajit Singh on 15 May 2012 while making a statement in the parliament under rule 193 emphasized the need for smaller aircraft and smaller airports connecting places and people who have remained off the aviation grid. (Lok Sabha: Synopsis of Debate, 2012)
Obviously the business model and the financial implication of such an action need to be examined. It is not out of place to mention that the Govt of India (GOI) is toying with the idea of setting up an, "Essential Air Services Fund" (EASF). The routes to be selected will be loss making routes connecting smaller cities with lower passenger services load. An auction would take place and the operator who quotes the lowest subsidy will get the route. (Mishra, 2012)
The GOI’s plan to focus on building 250 small airports by the year 2020 is yet another step in that direction. Monitoring the expected growth and ensuring that it happens in a sustainable manner, DGCA is in the process of opening a separate directorate and has already appointed separate flight inspectors for the same. A recruitment drive is already on within the government to bridge the skill gap and gradually build the skill set required for the expected boom in general and business aviation industry. Govt of India had also invited a team from International Civil Aviation Organisation (ICAO) to chart the growth path in the area of General and Business Aviation. The team has completed its work and has already submitted its report.
Skill Deficiency in Aviation Management
With activities as mentioned before panning out over the next few years, skill deficiency is expected to become a major constraint in the growth forward. Skill in a sector as complex as aviation, has to be developed and nurtured over a long period of time. Though there are various ways to develop the requisite skill, a good approach could be look at industry standards and best practices. The ISO standard is a good way but it does not fit the bill to the tee due to the complex nature of aviation business.
The IS-BAO program has been developed by IBAC (International Business Aviation Council) to tackle such issues and would make things grow in a sustainable manner from General and Business Aviation perspective. In many business sectors, international standards are recognized for their role in facilitating global commerce. IS-BAO is similar in this respect as its fundamental purpose is to foster standardized, safe and highly professional aircraft operations.
IBAC recognized the need for the business aviation community to take a lead role in fostering harmonization of operating procedures and requirements. IBAC works closely with the International Civil Aviation Organization (ICAO) towards international standardization. The President of the ICAO Council has endorsed the efforts of the business aviation community in developing an industry ‘code of best practice’. IS-BAO incorporates the International Standards and Recommended Practices for the Operation of Aircraft applicable to business aviation prescribed in ICAO Annex 6, Part II for International General Aviation- Aeroplanes. (http://www.ibac.org/is_bao/is-bao-overview)
IS-BAO is a code of best practice. It has been developed by the industry for the benefit of the industry. It is the industry’s contribution to promoting highly professional operational practices. IS-BAO is intended to build upon the excellent safety record already established by business aviation.
In its simplest form, IS-BAO is a uniform operational template that addresses risk-management and problem-solving based on proven procedures in a universally understood manner.
Action Plan for Skill Development and Global Best Practices
The expected skill shortage in General and Business Aviation could be tackled by training the manpower by the Indian agency of IBAC, the Business Aircraft Operators Association (BAOA). Given that the awareness has to be created and the program launched across India, the following needs to be done
Creation of Sub Committees
BAOA could appoint the subcommittees related to Standards, Safety and Data collection from a structural perspective. Each subcommittee will develop and monitor the process established. From a standards point of view, 3 to 4 champions could be identified in order to take this forward. All the three sub committees will interact with each other to make the process rigorous.
Evangelism and Awareness Campaign
The Champions in the Standards committee will be responsible for evangelist activities. This would happen through preliminary presentations at places of high business and general aviation activity including suitable awareness within DGCA
After a period of one year the awareness campaign draws to a close and an India based workshop, "Introduction to IS-BAO" is conducted at a suitable location.
Identification of test organisation
During the process of evangelism, it would be possible to identify likely candidates for the IS-BAO program. A suitable organisation should be selected just before the workshop so that the process is initiated from the selected candidate’s perspective.
Walk through the Certification Process
The standards subcommittee would be actively involved in taking the selected organization through the certification in order to document the process from an Indian and BAOA perspective so that the process can be replicated over a number of organizations.
Auditor creation Program
The auditor creation program should be initiated at this stage in parallel to rolling the program throughout India.
Once the skill sets are developed, it will lead to a sustainable growth of General and Business Aviation. Another offshoot of usage of best practices apart from safety would be lowering of the insurance premium as well as pro business aviation opinion in case of any unexpected liability issues. The standardization and the best practices would also give rise to creation of aircraft management organizations. Once a critical mass is reached, then IS-BAO would become the de-facto gold standard to follow
Reduction in Operational cost
Business Aviation is growing at a rapid pace and India along with Russia and China is considered the fastest growing market. The acquisition of business aircraft grew by 66.25% (2010 figures) since 2005. Currently there are over 552 (2010 figures) business aircraft ( including rotary and fixed wing)operating in India. (Singh, 2011) The cost of Aviation Turbine Fuel (ATF) constitutes 40% to 50% of the total operating cost.
Business aircraft in India are organised Business Aircraft Operators Association of India. Group purchase is an activity which helps both the buyer and the seller. Members of the association could purchase ATF through Indian Oil at a discounted rate from the market while Indian oil is assured of regular purchases from the members of the association through a loyalty program.
This loyalty program could be in nature of a co-branded loyalty card constituting Business Aircraft operators Association and Indian Oil. May be a financial institution of Indian Oil’s choice could also be roped in. The Business aviation segment is a large and valuable segment which is growing at a fast pace in India. The Diner card for fuelling business aircraft in South Africa is an example of its success. (CAASA, 2012)
Emulating the example of South Africa with suitable changes for Indian business environment could result in launch of a new loyalty program both for Indian Oil and Business Aircraft operators association.
The other way to reduce the operating cost is through reduction in insurance premium. Using Business Aviation Operators Association as an anchor organization, Business aircraft operators which are relatively better organized than general aviation operators could come out with a Group Insurance product for their members. Such an activity may result in reduction of annual premium to a large extent. MEEBA (Middle East Business Operators association ) has been able to create a product which provides a group insurance product to its members.
A unique activity by MEBBA is the introduction of MEBAA Aviation Insurance Scheme (MAIS). MAIS is a unique insurance product exclusive to members of MEBAA .MAIS provides coverage for Aircraft Hull, Hull War, Spares, Liability, Personal Accident and Pilot Loss of License. MAIS will cater for all business jets of members up to and including Airbus ACJ A318/A319/A320/A321 and Boeing BBJs aircraft. (MEBAA, 2012)
Maximum hull agreed value of USD 80,000,000.
Maximum combined single limit of USD 550,000,000 including coverage in respect of Extended Coverage Endorsement (Aviation Liabilities).
Additional coverage features of MAIS:
Lowest available position for total loss settlement.
Trip interruption expenses in the event of loss.
Option for "new for old" settlement.
Replacement Aircraft Rental Expenses in the event of loss.
Using Business Aviation in India
The acquisition of a Phenom 100 by Kalyan Jewellers headquartered in Kochi, Kerala in a state where communism rules the roost is a harbinger of times to come. The need to expand the business and yet maintain a work life balance has resulted in the Chairman cum Managing Director (CMD), Mr. Kalayanaraman use the aircraft as a business tool and not as a status symbol or an item of luxury.
The group’s jewellary chain of thirty is spread across Kerela, Tamilnadu, Karnataka, Andhra Pradesh and Pondicherry. Mr. Kalyanaraman feels that keeping a close eye on the business is tough due to the poor commuting options. Videoconferencing is an option but a poor due to poor maintenance of telecom infrastructure and it has also been seen that business travel by air has not come down in spite of videoconferencing. Commuting to small towns like Hubli, Belgaum or Tirupati takes days simply because there are limited number of direct air connections. On top of Kalyan group’s reason to go for the jet is the time it saves for the promoters in running the business. Mr. Kalayanaraman opted for Embraer Phenom 100 because it can land in some of the largest airstrips in the country and which means that some 250 cities and towns that have an airport become potential business centers for the group. (Scaria, 2012)
The dynamics of metamorphosis in the Indian aviation sector has resulted in a need for change. The winds of change blowing across the industrial landscape of India are blowing the mental cobwebs. Business and General Aviation are rightfully beginning to take their place in the sun and business aircraft is increasingly viewed as a tool of productivity and not merely a rich man’s toy.