The market for business aircraft in India is wide open and set to grow at a rate of about 13 percent each year over the next decade, according to Alok Wadhawan, a manager with the structured finance division of South African bank Investec. According to Wadhawan, there are currently 143 business jets registered in India (more than China’s tally of 116) but this fleet is set to grow quickly in parallel with the rapid expansion of personal and corporate wealth. The country also has 238 helicopters, which are used mainly for offshore energy industry support and VIP charter flights.
Wadhawan claimed that Investec is one of a few groups currently providing financing for aircraft transactions in India. Much of the capital is still provided by Indian banks, but he believes that international banks could do a lot to stimulate market growth there by offering more creative financing, including operating leases, which are still rare in India.
