Private jet firm NetJets is starting operations in India and will look at a partnership in China as it taps fast-growing markets outside its traditional base of the United States and Europe, a senior official said.
NetJets, a unit of billionaire investor Warren Buffett's Berkshire Hathaway, expects strong economic growth and rising incomes in Asia, the Middle East and Latin America will boost demand for private aviation.
NetJets, which sells fractional ownership in private jets to individuals and companies, operates more than 750 aircraft now. "In India, wealth creation is taking place at a phenomenal pace," said John Colucci, executive vice president, at a news conference with local partner Ashish Chordia, who represents luxury brands such as Porsche and Fendi in India. "We think we'll get to our first 100 customers in India very quickly, and that will be just the tip of the iceberg," he said.
There has been a 400 percent increase in the number of NetJets business flights to and from India in the last four years, Colucci said, adding the firm will be targeting high net worth individuals as well as businesses in India. "Our customer base is not affected by a market slowdown... break-even will be a few years down the line here, not many years," Colucci said.
India's total air passenger traffic is forecast to grow at nearly 20 percent annually over the next two years. Discount carriers are expected to grab an increasing share of the market, but demand for private aviation is also growing.
Tata Group's Indian Hotels recently bought a stake in Singapore-based Briley Group's BJETS, which also offers fractional ownership in private jets in India and southeast Asia. The venture has ordered 50 jets worth more than USD$600 million.
Brazilian plane maker Embraer is also eyeing the market for business jets.
Article source: Reuters.
No comments:
Post a Comment