New Delhi: Owners of private business jets in India can soon look forward to a one-stop shop for meeting all their travel needs. This follows Air Works making a Rs 120 crore strategic investment in Dubai-based private aviation company Empire Aviation Group. The new company will offer end-to-end aircraft asset management services for private business jet owners.
The strategic investment is through a mix of internal accruals and structured debt finance of Rs 120 crore from KKR & Co, officials said.
“If there is a owner of a private business jet who does not want to have the headache of maintaining a staff for managing the aircraft we can help them not only operating their flights but also getting clearance for the operations,” officials said. The new company expects to open the first office in the next 30-45 days in Bangalore followed by Delhi and Mumbai. Initially staff will be brought from the UAE base, officials said.
Declining to give details of the companies that have already signed up with Empire Aviation, officials said, “In the United Arab Emirates we operate for some former prime ministers and wealthiest of the wealthy.”
On how much a business jet owner would have to pay for the services, officials said: “The management model will depend on the type of aircraft. You might have some one who flies 20 per cent of the time and offers the aircraft for charter services 80 per cent of the time. The amount such a customer will pay will be different from what another customer pays,” officials said.
Air Works may look to raise between $ 35-50 million capital but there is no talk to divest at the moment, officials said. While GTI has a stake holding of about 25 per cent, Punj Lloyd holds about 19 per cent stake in Air Works. The funds will be raised primarily to create an engine Maintenance, Repair and Overhaul facility, officials said.
