Airport lounges have become more crowded than the cafés and restaurants at airports. Thanks to credit cards doling out lounge access, what was once considered a luxury is now a crowded mass offering.
You know what’s piquing the interest of wealth creators?
Private jets are fast emerging as a preferred choice for the wealthy who value luxury and exclusivity.
As the rich get richer, they’re flying private.
From billionaires to celebrities, politicians to sportspersons – the who’s who globally own private jets.
Flying privates are no longer just for commuting – they are a power and fashion statement!
Globally, the likes of Jeff Bezos, Bill Gates, Elon Musk and Donald Trump own private jets. Closer home, Mukesh Ambani, Adar Poonawalla, Sachin Tendulkar, Virat Kohli, Shah Rukh Khan, and Shilpa Shetty are a few private jet owners.
In this blog, let’s explore the private jet space and what it takes to own a private jet.
Today, we’ll cover –
- The history of private jets in India
- The private jet industry in India
- The cost of owning a private jet.
- How companies like JetSetGo are changing the private jet industry
Let’s dive in.
The history of private jets in India
India’s private aviation journey began in 1910 when Maharaja Bhupinder Singh of Patiala acquired the country’s first aircraft – a fleet that included Henry Farman biplanes and a Blériot XI monoplane.
Soon, aviation became a mark of distinction among Indian royalty, with ruling families like Scindias of Gwalior taking on initiatives like building an airport by Madho Sagar Lake with a landing jetty, test house, wireless station to aid incoming aircraft and a fully equipped meteorological station. During this era, aerodromes and flying clubs emerged across princely states such as Hyderabad, Jaipur, and Travancore.
Even after independence, private jets remained a rare luxury, accessible to only a select few industrialists. However, the 1990s economic reforms transformed this landscape, enabling business leaders to view private jets as strategic assets, not just symbols of luxury.
Today, private jets represent affluence, efficiency, and ambition, playing a key role in the seamless travel of India’s ultra-wealthy.
The private jet industry in India
As of 2023, India has the largest fleet of private jets in South Asia and the third largest in the Asia Pacific. Wealthy Indians own over 151 registered private jets.
Industrialists, celebrities, and politicians are using private jets not just to travel across the world but also to make domestic trips – be it for work commitments or leisure.
In recent years, private jets have taken centre stage at high-profile events, from the Ram Mandir consecration in Ayodhya to the India vs. Pakistan cricket match in Ahmedabad.
Wait, even weddings!
The grand Ambani wedding this year had more than 100+ private jets flying guests across the venues!
The Indian private jet industry is expected to be valued at USD 37 billion by 2035.
What is driving the increased interest in private jets?
The rising number of wealthy Indians is driving demand for private jets. With the ultra-high-net-worth (UHNI) population projected to increase by 50% by 2028, India’s private jet market is set for significant expansion.
The usage of private jets is also expanding.
From bachelor parties, proposals, and intimate family celebrations to discreet business meetings – the wealthy are not just using private jets for travelling. Short-duration journeys and event-based usage of private jets have increased significantly.
The wealthy are also increasingly leaning towards private jets due to the other services and offerings that come along with private jets, such as –
- Limousine pick up and drop from the airport
- Concierge services for hotel and restaurant bookings
- Gourmet food catering and personal chef
- Spa and beauty treatments
The growing private jet market is also being recognised by authorities, and we are seeing infrastructure and facilities being built to support this industry.
A few interesting developments I know of are –
Dedicated private jet terminals:
- In 2020, Delhi’s Indira Gandhi International Airport launched India’s first General Aviation terminal for private jets. This is India’s first FBO or fixed-base operator. The 550 sq.m terminal was built exclusively to handle business jets and can handle as many as 150 flights a day. Guess what? Besides the usual offerings of airports, this private jet terminal has a small retail area with duty-free shopping. There is also a 2,600-sq-m parking area, which can accommodate 50 vehicles while fifty-five aircraft can be parked.
- In 2022, Mumbai’s Chhatrapati Shivaji Maharaj International Airport revamped its General Aviation terminal exclusively for private jets. The terminal can handle over 50 passengers every hour for a quick check-in and has specially trained staff to receive passengers around the clock. There is also a lounge, bar, and buffet serving global cuisines. The terminal also provides butler service for guests who can book meeting and conference room facilities.
- In December 2022, Prime Minister Narendra Modi inaugurated a 40,000 sq ft luxury business jet terminal at Kochi International Airport.
- In September 2024, Telangana’s Rajiv Gandhi International Airport unveiled a new General Aviation terminal catering to private jet operations.
Favourable policies:
Government initiatives like the GIFT city’s aircraft leasing and financing scheme, reduced customs duties and GST for Non-Scheduled Operator Permits (NSOP), and support in addressing regulatory hurdles make private jet co-ownership models more enticing.
What is the cost of owning a private jet?
Want to know how much it costs to own a private jet? Here’s a breakdown of some of the major costs of owning a private jet –
1. Initial purchase cost
The cost of acquiring a private jet varies on various factors, such as its type and configuration. Light jets like the Cirrus Vision can start at around INR 16 crores, whereas long-range premium jets like the Gulfstream G650 can easily exceed INR 550 crores.
In addition to this, you have to pay delivery fees, airport landing charges, and parking and housing charges.
2. Taxes and registration fees
Private jet ownership involves various fees and taxes such as aircraft registration fees, customs duties and Goods and Services Tax (GST).
The basic customs duty for private jets ranges from 2.5-3%, and the Social Welfare Surcharge is about 10% of the customs duty. While the Integrated Goods and Service Tax (IGST) for jets for personal use is 28%, the IGST for commercial private jets is only 5%.
3. Operating costs
There are costs depending on the flight frequencies, such as fuel, destination airport’s landing and parking fee, hangar to airport logistics, etc. These costs vary based on flight frequency, aircraft type, and airport location. For example, metropolitan airports like Mumbai and Delhi typically have higher hangar and landing fees.
Then, there are fixed expenses directly linked to the jet’s overall flying and maintenance, such as crew salaries, hangar rental, insurance, etc.
4. Customisations, upgrades and add-ons
Owners usually customise their jets and upgrade some features to suit their preferences. From leather upholstery, jacuzzis, and ultra-premium bathroom fittings to state-of-the-art entertainment systems – the sky is literally the limit when designing a private jet.
Ownership models for private jets
At present, there are 3 popular modes of owning private jets –
On-demand charter services in India
On-demand charter services are picking up in India due to their convenience and efficiency.
Several on-demand charter service providers like Poonawalla Aviation, Taj Air, JetSetGo, Hype Luxury, BookMyCharters and Club One Air are changing luxury air travel, providing private flying options to India’s wealthy.
I particularly found the JetSetGo businesses very interesting. Let’s take a look –
JetSetGo
Dubbed the “Uber of Indian Skies”, JetSetGo was founded by Kanika Tekriwal and Sudheer Perla to make private aviation more accessible and adaptable.
In an interview with Business Today, Kanika said, “It was okay to travel by a Rolls-Royce or be seen with a $100,000 Birkin bag, but it was not okay to travel by a private jet. But that perception is slowly changing” – to me, this sums up the perception of the private jet industry.
JetSetGo allows customers to plan their travel, customise itineraries, and choose from a fleet of over 10 jets and 2 helicopters.
The pricing for the private jet varies depending on the aircraft type, travel distance, and duration, typically starting from INR 1.5 lakh per flight hour and can go up to INR 8 lakh or more for larger luxury jets.
In January, JetSetGo signed a 280 hybrid-electric aircraft deal worth over USD 1.3 billion to deploy these planes for airport transfers, regional connectivity, inter-city commutes and urban air taxis. They also plan to raise USD 900 million to acquire 12 new mid-sized aircraft and expand its reach to Europe. They also plan to launch an IPO by 2027-28.
In summary
Private jets in India have evolved from symbols of royalty to indispensable assets for industrialists, celebrities, and the ultra-wealthy. Private aviation is flourishing post-covid, driven by the wealthy seeking efficiency, privacy, and luxury while flying.
The private jet industry exemplifies how wealth creation fuels demand for luxury and premium services. As India’s wealthy population grows, so does the appetite for bespoke solutions that seamlessly blend convenience and exclusivity.
The rise of innovative business models, along with infrastructure advancements, highlights a pivotal shift in the luxury travel ecosystem. These developments are wealth-creation opportunities for businesses that capitalise on this growing demand.
To put it simply – in the luxury segment, the sky is truly the limit!
Disclaimer: The information contained in this document is for informational purposes only.