Tata Group readying plans for general aviation sector
02 Sep 2011
Mumbai: The $72 billion Tata Group may be putting together a plan to become a major player in the general aviation sector. According to reports, the game plan may include tying up with international players for business jets, helicopters as well as aircraft management and maintenance services.
Market sources indicate that investments in the venture may be channelled through the group's two main holding companies, Tata Sons and Tata Industries.
A report suggests that the group may be in talks with Florida-based Avantair to establish a partnership in India. Avantair's fractional ownership business model, allows individuals and businesses the benefit of owning an executive aircraft at a fraction of the overall cost.
The report cited officials in the know as saying that discussions, including equity structure of the venture, were at an early stage. The Tata Group already has an investment in a fractional jet operator, Singapore's BJETS, since February 2008.
This investment is held by the group's hospitality arm, Indian Hotels, which holds about 62% stake in BJETS.
The Tata Group is all set to launch a joint venture with Hong Kong-based Metrojet to provide aircraft maintenance services for the corporate aviation market.