Shaping the Future of Business Aviation in India

The BizAvIndia Conference took place on March 24, 2025, at the India International Centre (IIC) in New Delhi, was a landmark event for India’s rapidly evolving business aviation sector. With the theme “Transforming Business Aviation for Viksit Bharat – Policy Reforms, Sustainable Growth, and Innovations,” this conference aimed to address the sector’s future trajectory, explore policy reforms, and advocate for sustainable practices while examining the innovative technologies that are driving change.

The Indian business aviation sector is poised for significant growth, buoyed by a rapidly expanding economy, a burgeoning affluent middle class, and increasing demand for private air travel. However, it faces its share of challenges, particularly in terms of policy reforms, environmental sustainability, and evolving business models. This conference brought together industry experts, policymakers, aviation leaders, and stakeholders to discuss and strategise the way forward for the sector.

THE GROWTH STORY OF BUSINESS AVIATION IN INDIA

The Indian business aviation industry has witnessed steady growth in recent years, with more corporations, high-net-worth individuals (HNWI), and government entities utilising private aircraft for convenience, flexibility, and time savings. However, the sector continues to face several bottlenecks, particularly in terms of outdated policies, regulatory hurdles, and infrastructure gaps.

One of the key areas of focus at the BizAvIndia Conference was the pressing need for policy reforms. India’s aviation policy is often criticised for being restrictive, with high taxes, complicated approval processes, and a lack of infrastructure in tier-2 and tier-3 cities. For the sector to thrive, there is a need for more streamlined procedures, tax incentives, and the creation of a more favourable business environment.

Naveen Jindal, Member of Parliament and the Chief Guest, laid out his perspectives on the immense scope and opportunities in business aviation in India, said, “Business aviation is an intriguing sector. It’s fascinating to see how in countries like the US and in Europe, smaller aircraft vastly outnumber larger planes. In India, however, we have an inverted pyramid, with more large aircraft than small ones. There’s hope for India to grow its fleet of smaller aircraft, which will not only meet business needs but also inspire a new generation of pilots and aviation enthusiasts.”

He added, “In the US, one can drive directly to the aircraft, board, and fly internationally. In India, even for a domestic flight, passengers must undergo multiple security checks when transferring between flights, which wastes valuable time.”

“Streamlining ramp-to-ramp transfers would significantly enhance efficiency,” he opined.

Government initiatives such as the “Regional Connectivity Scheme” (UDAN) have laid the groundwork for expanding air travel to underserved regions, but business aviation requires a more nuanced approach that takes into account the specific needs of corporate jet users and operators. The conference will discuss how policies can be reimagined to foster greater industry growth, particularly as India moves closer to its vision of a “Viksit Bharat” (Developed India) by 2047.

The representative of one of the key players in the global aviation sector, Airbus, which has a substantial presence in India, also threw light on the opportunities for growth in the Helicopter sector.

Sustainability will also take centre stage. The aviation industry is under increasing pressure to reduce its carbon footprint, and business aviation is no exception. The rise of sustainable aviation fuel (SAF), carbon offset programmes, and innovations in electric aircraft are part of the conversation. As the world grapples with climate change, business aviation will need to adopt green technologies and practices to ensure its long-term sustainability.

IS FRACTIONAL OWNERSHIP A FAILING MODEL?

A hot topic that sparked debate at the BizAvIndia Conference is the future of fractional ownership in India’s business aviation sector. Fractional ownership—where multiple owners share the use and cost of a single aircraft—has been a popular model for private aviation in many parts of the world. However, India has faced challenges that have led some to question its viability.

In theory, fractional ownership should provide a cost-effective entry point for businesses and individuals who want to enjoy the benefits of private air travel without the full financial burden of sole ownership. However, several factors have hindered the widespread adoption of fractional ownership in India. The lack of adequate regulatory frameworks, the absence of clear tax policies, and the complexity involved in structuring fractional deals have all contributed to its slow uptake. Additionally, high operating costs and the limited availability of suitable aircraft have made it challenging for companies to make the model economically viable.

“ONCE THE RIGHT REGULATORY ENVIRONMENT IS IN PLACE, THE MARKET WILL NATURALLY DRIVE THE SECTOR FORWARD, AND THAT’S WHEN WE WILL SEE THE TRUE TRANSFORMATION”
—FAIZ AHMED KIDWAI, DIRECTOR GENERAL OF THE DGCA INDIA

Asangba Chuba Ao, Joint Secretary, Ministry of Civil Aviation (MoCA) highlighted the issue and said, “The Ministry is actively working on improving the fractional ownership model, particularly in addressing challenges within the current tax regime. While fractional ownership exists in other countries, we are working to tailor a system that works for India’s unique market and regulatory environment.”

At the same time, fractional ownership does have potential, especially for companies with fluctuating or seasonal needs for private air travel. The model could offer cost-effective solutions for businesses looking to expand their operations or improve the mobility of their executives, especially if it is paired with more flexible policies and a more favourable market environment.

As Group Captain Rajesh K. Bali, Managing Director BAOA, also emphasised that fractional ownership models need more flexibility and simplification to reach a broader customer base. “Despite the challenges, business aviation remains indispensable. With the right policies, industry collaboration, and technological advancements, we can create a more efficient, sustainable, and accessible aviation sector that will remain relevant for decades to come.”

While fractional ownership may not be the dominant model in India today, there is still room for innovation in this area. The panellists at the BizAvIndia Conference agreed that fractional ownership needs reform and restructuring to better align with the current economic and regulatory environment.

A SECTOR POISED FOR GROWTH DESPITE CHALLENGES

Despite the challenges, the Indian business aviation sector is poised for significant growth. As the country’s economy continues to expand, the demand for private air travel is set to increase, driven by the growing number of affluent individuals, multinational corporations, and government officials who see the value in efficiency and convenience. Moreover, as India’s domestic and international markets continue to integrate, business aviation will be key to meeting the connectivity demands of a rapidly changing economy.

Advancements in aircraft technology, such as the development of smaller, more fuel-efficient aircraft and the rise of electric aviation, will also play a pivotal role in the growth of the sector. With greater accessibility to regional airports and improved aviation infrastructure, the expansion of business aviation is likely to extend beyond the major metropolitan hubs like Delhi, Mumbai, and Bengaluru, opening up new opportunities for regional business travel.

BUSINESS AVIATION: A VITAL PLAYER IN GLOBAL CONNECTIVITY

On this Faiz Ahmed Kidwai, Director General of the DGCA India, said, “India’s aviation potential is at least two to three times its current capacity, especially in the fields of fixed-wing aircraft and helicopters. The question remains: Why haven’t we realised this potential yet? What barriers are we facing? We have the right people in place, and now is the time to set ambitious goals to grow this sector—not just for business owners but for all Indians who stand to benefit.”

Aviation is about connectivity and safety, DGCA is taking a comprehensive review of its regulatory frameworks. “Once the right regulatory environment is in place, the market will naturally drive the sector forward, and that’s when we will see the true transformation,” he said.

“WHILE FRACTIONAL OWNERSHIP EXISTS IN OTHER COUNTRIES, WE ARE WORKING TO TAILOR A SYSTEM THAT WORKS FOR INDIA’S UNIQUE MARKET AND REGULATORY ENVIRONMENT”
—ASANGBA CHUBA AO, JOINT SECRETARY, MINISTRY OF CIVIL AVIATION

Asangba Chuba Ao also addressed the sector’s growth potential, “We are actively working to align India’s aviation sector with natural growth patterns. To achieve this, we need a significant increase in aircraft numbers. India is already the third-largest domestic aviation market, but we want to see the General and Business Aviation (GABA) sector grow both in size and quality.”

He also pointed out the introduction of the Cape Town Convention Bill in the Rajya Sabha. The introduction of the Bharatiya Viman Adhiniyam 2024, will further boost the growth of the sector.

Leasing and financing are critical for expanding India’s business aviation fleet. High capital costs for aircraft acquisition make leasing a valuable option, allowing companies to access private jets without the financial strain of ownership. Financing mechanisms, such as leaseback agreements and structured loans, offer flexibility to businesses seeking to scale their aviation needs while preserving liquidity.

BUSINESS AVIATION IN INDIA: PROGRESS AND POTENTIAL

K. Narayana Rao, Director at DIAL, spoke about the dramatic growth in business aviation since 2006. “When we began in 2006, there were fewer than 100 business aircraft in India. Today, that number has surpassed 300. We’ve also seen a surge in general aviation movements at Delhi Airport, growing from 6-9 daily flights to over 30-40. This sector will continue to grow, potentially reaching nearly 1,000 aircraft in the next 25 years,” he said.

THE PATH FORWARD: POLICY REFORMS AND INNOVATION

So, what is the way forward to achieve the potential growth opportunity? Group Captain R.K. Bali (Retd) concluded with, “Business aviation must evolve to meet the demands of a changing market, a shifting regulatory environment, and the growing need for sustainability. Advances in electric and hybrid aircraft, better air traffic management, and digital technologies will shape the future of the industry.”

The BizAvIndia Conference 2025 was held at a crucial moment for India’s business aviation industry. It offers a unique platform for industry leaders, policymakers, and aviation stakeholders to come together, share insights, and chart a roadmap for the sector’s future. The theme of transforming business aviation for a “Viksit Bharat” encapsulates the collective vision of a more sustainable, innovative, and policy-driven aviation sector that can meet the demands of a rapidly developing economy.

As we look to the future, the conference highlights the opportunities for a sector that, while still facing challenges, is undeniably on the cusp of significant growth and transformation. Whether fractional ownership becomes a dominant model or evolves into a new framework altogether, the business aviation industry in India is set to soar to new heights in the years ahead.

Manish Kumar Jha is a Consulting & Contributing Editor for SP’s Aviation, SP’s Land Forces and SP’s Naval Forces and a security expert. He writes on national security, military technology, strategic affairs & policies.