Following the move from Oxford Airport last year, the overwhelming response from delegates and exhibition visitors was to make Biggin Hill the permanent home for the event.
2012 is the year of the London Olympic and Paralympic Games and we were told by the special CAA co-ordination team, presenting at BAE 2011, that we can expect unprecedented levels of business aircraft movements covering the period of the Games. Although this will be a welcome boost for the industry, and especially those operating in the SE of England, the industry is still suffering from the effects of the global financial crisis and with European economies still in turmoil the outlook for the industry is still uncertain.
The 4th Indian Business Aviation Expo (IBAE) will be staged once again in Delhi. The 2012 event saw a 40% increase in delegate attendance over the previous year, a clear testament to the growing importance of the sector. Those assembled at the 2012 event heard from many of the country's business aviation leaders, who told us that the business jet fleet had expanded from 55 in 2007 to 150 in 2011. The current GA industry in India is valued at $220 million and is expected to be worth $320 million by 2017.
India is currently the 9th largest aviation market in the world, but is expected to become 3rd largest by 2017 (based on passenger numbers). India has 449 airports with only 100 of them operational. The Indian Gover
nment has pledged to invest $14.65 billion in airports and associated infrastructure by 2017, including $1.5 billion set aside for non-metro airports.
According to the DGCA there are 800 small aircraft and 300 helicopters in India, with the expectation that 1000 further aircraft will be added to the fleet by 2020. However, there was general agreement that infrastructure to support GA was a priority with metro airports needing to upgrade facilities to support GA and the Business Aviation community. Rohit Kapur, head of the Business Aircraft Operators Association, provided a shopping list to illustrate what was nee
ded as a minimum for the industry to develop – alternate GA airports in Delhi, Mumbai, Pune, Hyderabad, Bangalore, Agra and Goa; Metro cities to have 2/3 heliports; 20 FBOs to cover major operational airfields; develop 100 non operational airstrips across the country for GA use.
Jose Eduardo Costas, VP- Sales & Marketing, Embraer Asia Pacific anticipates the business jet market worldwide 2012 -2021, will be worth $260 billion (units 11,275) if expected GDP growth levels are met, or $205 billion (units 8,660) if there is a downturn. Asia Pacific will take an increasing share of the market with anticipated sales of between 1363 to 1690 aircraft, with India accounting for 390 to 485 units ($10-12billion). The important element in this is economic growth, with India’s GDP growth set to outperform world and Asian rates over the coming years, as well as emerging c
ountries such as China and Brazil. India’s economy is expected to overtake Germany by 2025.
Interestingly, India’s HNWI are growing the fastest of any country, with the number of $ billionaires at 55, ahead of the UK. China has 115 $ billionaires, which is more than Europe!
However, there were various speakers who cautioned against too much optimism with current punitive tax and regulatory restrictions acting as a brake on growth.
Chief guest, Naveen Jindal, Member of Parliament and head of Jindal Steel, pledged his support to the industry but recounted some of the frustrations and petty bureaucracy he had encountered whilst operating his company's aircraft which were essential to his business and the future prosperity of India.
Kapil Kaul, CEO of leading analysts, CAPA, was critical of inaction from the executive branch saying little had happened since last year's event in terms of simplifying the regulatory environment, but does believe that the Light Jet category of aircraft will prove particularly popular in India. The number of GA operators has now grown to 150, with many favouring the light jet.
MRO is also a growth business, with Hawker Beechcraft suggesting the industry could be worth $2.5 billion by 2020 if regulations and administrat
ion are simplified and access to spare parts is speeded up.
There was general agreement that regulatory process in India is complex, bureaucratic and slow to change, with too many Ministries involved in the process of owning and operating aircraft. GA also takes a back seat to commercial operations, so much still needs to be done to lobby Government and promote the interests of those gathered at IBAE 2012.
With over 50 members now, the Business Aircraft Operators Association, has some serious clout and delegates were urged to join with the Association in pushing for change and to help the executive and legislative branch better understand the role of Business Aviation in nation building.