IndiGo parent to enter business aviation terminals operations
19 Jun 2009
New Delhi: Low cost carrier, IndiGo, will enter the airport terminal business with its parent company, InterGlobe, tying up with UK-based BBA Aviation, one of the world's largest general aviation terminal operators, to build similar facilities at metro airports in India. InterGlobe has already bid for the construction of a ''fixed-base operator (FBO)'' terminal for business jet users in Delhi.
With the Indian economy poised to perform well InterGlobe is bullish on FBO terminals seeing a continuing demand for business jets and related facilities. Amongst the metro airports, currently Mumbai offers a terminal for private planes but has issues related to runway use. The nation's capital does not have issues regarding runways but corporate bigwigs still have to move through commercial airline terminals.
According to InterGlobe general aviation officials, all metro airports in India have the potential to support FBO terminals. Such terminals can be constructed at costs in the range of half a million to eight million dollars depending on the level of services and exclusivity required. Such terminals will also provide hangars executive jets could be parked.
In Delhi, such a facility needs to be in place in time for next year's Commonwealth Games as it is forecast that a large number of private plane movement is likely to take place then.
InterGlobe is also the sole sales and service agent for US business jet maker Hawker Beechcraft for the Indian sub-continent. Company officials indicated that in the past three months they have already sold a number of top line Hawker 4000 aircraft which carry a list price of $22.5 million (about Rs110 crore) apiece. They are likely to finalise some more deals.
Hawker Beechcraft planes are available in the range of $1-22.5 million.
Officials point out that a country of India's size and with its economic growth has only 250 private planes while the US has 4,000.
Hawker has a market share of nearly 60 per cent in India with Dassault Falcon, Bombardier and Cessna accounting for the rest.
