Tatas buy stake in BJets
Manav Singh of Club One Air to start low-cost service
MUMBAI: The business of business jets seems to be the next big thing in Indian aviation. The Tata Group, through its hospitality venture Indian Hotels, is investing in BJets, a business jet operator, which intends to start services aimed at the booming business jet market in Asia later this year.
Neither quantum of Tatas’ stake, which a media statement termed ‘significant’, nor the amount of money invested by the Indian conglomerate has been revealed.
Even while BJets and the Tatas announced its plans, Manav Singh, the promoter of India’s first fractional ownership airline venture Club One Air, said he was launching a low-cost air charter service by acquiring 10 Eclipse 500s, a very light jet (VLJ) from Eclipse Aviation. This would be under a new venture to be floated by the entrepreneur and would be separate from Club One Air.
Manav Singh said, “The service would be the first of its kind and would be targeted at both middle as well as senior management. Club One Air has an all frills, high-end model while the new service would be no frills and low-cost.” It is expected to take to the skies around August. A VLJ, also known as a microjet, is a small jet airplane seating 4 to 8 people.
BJets has signed a deal for 50 jets worth over $600 million at the ongoing Singapore Air Show. The aircraft on order include 20 Cessna Citation CJ2+ jets and 20 Hawker 850XP and 900XP jets with options for 10 more. The large order is expected to propel the new firm to the top of the pile in terms of business jet operators in Asia.
Analysts say that Asia has been an under-served market for business jets. With the growth in Asia shifting the focus of global business, demand for business jets has also taken off.
Recently IATA chief Giovanni Bisignani said that he expected Asia to fare better than the rest of the world in aviation due to the growth from India and China.
BJets has Briley Group-a privately held company with offices in Singapore and USA- as its majority shareholder. BJets would have offices in Mumbai and Singapore, with flight operations from both India and Singapore. In India, it will set up its operations base at the Hyderabad International Airport coming up at Shamsabad.
In a statement on Tuesday, Bala Ramamoorthy, founder and MD of BJets and CEO of the Briley Group, said BJets will combine the best of the US and European models of fractional ownership, block charter and aircraft management services.
On competition coming from the Tata group, Manav Singh said, “The pie is very large. At the moment we have only scratched the surface.”
Indian hotels have already been in the private jet space with a company called Taj Air. An official close to the deal indicated that the BJets deal is independent of Taj Air.
n_john@dnaindia.net
