Consolidation only way to make airline biz economically viable

Wednesday, 27 May 2015 | PTI | New Delhi

New Delhi: With the busi­ness jet and general avia­tion industry clocking a two per cent negative growth last fiscal, consoli­dation seems to be the only way out to make the busi­ness economically viable, the new head of an opera­tors’ body said today.

Business Aircraft Operator Association’s newly-appointed president Jayant Nadkarni told the news agency that the process has already begun, though at a smaller scale, as people have realised that flying an aircraft and set­ting up a company with a non-scheduled operator permit (NSOP) are not conducive.

“Consolidation has already started but it is happening in a small way. When consolidation hap­pens, slowly growth takes place, it gives you economy of scale besides making your business more focused,” he said.

Nadkarni, who is also the co-founder and chief operating officer of the Mumbai-based air charter company Invision Air, said the jet operators need to adopt aircraft management business model, in which several NSOP holders col­laborate with one operator, for a long-term viable busi­ness.