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The Adani Group plans to double its business jet fleet to ensure it has enough planes to carry its top executives, as it charts an expansion strategy with renewed vigor after the Supreme Court acquitted it of allegations made by Hindenburg Research.
The Adani Group plans to double its business jet fleet to ensure it has enough planes to carry its top executives, as it charts an expansion strategy with renewed vigor after the Supreme Court acquitted it of allegations made by Hindenburg Research.
The group has begun the process to buy six Pilatus PC-24 aircraft, according to two people familiar with the matter. Currently, the group owns six private jets: two Embraer Legacy 650; and one each of the Bombardier Global 6500, Bombardier Challenger 605, Hawker Beechcraft 850 and Beechcraft B-200, and two helicopters.
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The group has begun the process to buy six Pilatus PC-24 aircraft, according to two people familiar with the matter. Currently, the group owns six private jets: two Embraer Legacy 650; and one each of the Bombardier Global 6500, Bombardier Challenger 605, Hawker Beechcraft 850 and Beechcraft B-200, and two helicopters.
The aircraft will be acquired in the resale market by Karnavati Aviation Pvt. Limited. Ltd, the aviation arm of the group which houses all of its aircraft.
“The company does not buy new planes, but rather buys them on the resale market, which means it should cost them more $300 crore to buy the six planes,” a senior executive of a private aircraft operating company said on condition of anonymity. “The plane can fly to any part of the country and can also land on difficult runways and in difficult conditions. “It is an airplane suitable for domestic use.”
The executive added that if the company had decided to buy new aircraft, six new Pilatus PC-24s would have cost a total of around $450 crores.
Queries sent to the Adani Group remained unanswered till press time. However, an Adani executive confirmed the purchase plan to Mint and said the planes will start arriving soon. He added that deliveries are likely to be spread over a long period and that the six deliveries could take up to 18 months to arrive.
However, one private jet industry observer said deliveries could happen sooner, adding that the company could be considering putting its business jets into commercial use.
Another industry observer, however, said commercial plans are unlikely. “Any company purchasing that many aircraft at once would have meant a plan to enter the commercial aircraft leasing space,” the person said. “(But) since it is the Adani Group, the company may be considering using them for its captive requirements as it is expanding.”
According to industry estimates, India has around 150 business aircraft and most of these aircraft are owned by large conglomerates. Conglomerates like Mukesh Ambani-led Reliance Industries Ltd own the largest number of private jets in the country; Its largest aircraft is the Airbus Charter Jet 319.
Still, India’s figure is much smaller than the estimated 3,500 business jets in the United States, 970 in Mexico, 490 in Germany and 300 in Venezuela.
The segment is expected to register healthy growth as the general elections scheduled for this year would give a big boost to business jet flights in the country.
The induction of aircraft in the Adani Group also comes after the Supreme Court got a nod on the Hindenburg report, published on January 24 last year, which exposed several malpractices in the group companies. The report hit its shares, forcing its flagship company to cancel a $2.4 billion stock sale. The Adani Group had denied the allegations.
Earlier this month, the top court reposed confidence in the markets regulator and dismissed petitions seeking a separate probe into Hindenburg Research’s allegations against the group.
The group, thanks to the favorable court order, hopes that more foreign investors will pour money into the conglomerate, as it turns to international debt markets to aid its expansion plans. The Hindenburg saga had made the conglomerate “untouchable” for private banks and sovereign wealth funds, whose boards of directors distrusted its proposals.
The group has begun the process to buy six Pilatus PC-24 aircraft, according to two people familiar with the matter. Currently, the group owns six private jets: two Embraer Legacy 650; and one each of the Bombardier Global 6500, Bombardier Challenger 605, Hawker Beechcraft 850 and Beechcraft B-200, and two helicopters.
The aircraft will be acquired in the resale market by Karnavati Aviation Pvt. Limited. Ltd, the aviation arm of the group which houses all of its aircraft.
“The company does not buy new planes, but rather buys them on the resale market, which means it should cost them more $300 crore to buy the six planes,” a senior executive of a private jet operating company said on condition of anonymity. “The plane can fly to any part of the country and can also land on difficult runways and in difficult conditions. “It is an airplane suitable for domestic use.”
The executive added that if the company had decided to buy new aircraft, six new Pilatus PC-24s would have cost a total of around $450 crores.
Queries sent to the Adani Group remained unanswered till press time. However, an Adani executive confirmed the purchase plan to Mint and said the planes will start arriving soon. He added that deliveries are likely to be spread over a long period and that the six deliveries could take up to 18 months to arrive.
However, one private jet industry observer said deliveries could happen sooner, adding that the company could be considering putting its business jets into commercial use.
Another industry observer, however, said commercial plans are unlikely. “Any company purchasing that many aircraft at once would have meant a plan to enter the commercial aircraft leasing space,” the person said. “(But) since it is the Adani Group, the company may be considering using them for its captive requirements as it is expanding.”
According to industry estimates, India has around 150 business aircraft and most of these aircraft are owned by large conglomerates. Conglomerates like Mukesh Ambani-led Reliance Industries Ltd own the largest number of private jets in the country; Its largest aircraft is the Airbus Charter Jet 319.
Still, India’s figure is much smaller than the estimated 3,500 business jets in the United States, 970 in Mexico, 490 in Germany and 300 in Venezuela.
The segment is expected to register healthy growth as the general elections scheduled for this year would give a big boost to business jet flights in the country.
The induction of aircraft in the Adani Group also comes after the Supreme Court got a nod on the Hindenburg report, published on January 24 last year, which exposed several malpractices in the group companies. The report hit its shares, forcing its flagship company to cancel a $2.4 billion stock sale. The Adani Group had denied the allegations.
Earlier this month, the top court reposed confidence in the markets regulator and dismissed petitions seeking a separate probe into Hindenburg Research’s allegations against the group.
The group, thanks to the favorable court order, hopes that more foreign investors will pour money into the conglomerate, as it turns to international debt markets to aid its expansion plans. The Hindenburg saga had made the conglomerate “untouchable” for private banks and sovereign wealth funds, whose boards of directors distrusted its proposals.