The group has initiated the process to buy six Pilatus PC-24 aircraft, according to two people aware of the matter. Currently, the group owns six private jets—two Embraer Legacy 650; and one each of Bombardier Global 6500, Bombardier Challenger 605, Hawker Beechcraft 850 and Beechcraft B-200—and two helicopters.
The aircraft will be purchased from the resale market by Karnavati Aviation Pvt. Ltd, the group’s aviation arm that houses all its jets.
“The company is not buying new aircraft, but (buying them) from the resale market, which means it should cost them over ₹300 crore to buy all six aircraft," said a top executive at a private jet operator company on the condition of anonymity. “The plane can fly to any part of the country and can also land on difficult runways under difficult conditions. So, it is an apt aircraft for domestic usage."
The executive added that if the company had decided to buy new airplanes, six new Pilatus PC-24 would have cumulatively cost around ₹450 crore.
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 the deliveries are likely to be spread over a long period and can go up to 18 months for all six deliveries to arrive.
A private jet industry watcher, however, said the deliveries may be sooner, adding the company may be looking at putting its business jet aircraft for commercial usage.
Another industry watcher, however, said commercial plans are unlikely. “Any company buying so many aircraft in one go would have meant that a plan to enter into the business jet renting space," the person said. “[But] since it is the Adani Group, the company may be looking at using them for its captive requirements since it is expanding."
According to industry estimates, India has about 150 business jets with large conglomerates owning most of these aircraft. Conglomerates like Mukesh Ambani-led Reliance Industries Ltd own the most private jets in the country—their largest aircraft being the Airbus Charter Jet 319.
Still, India’s tally is much lower than the estimated 3,500 business jets in the US, 970 in Mexico, 490 in Germany and 300 in Venezuela.
The segment is set to register healthy growth, as the general elections due this year would give a big boost to business jet flights in the country.
The aircraft induction at the Adani Group is also happening after it got a clean chit from the Supreme Court on the Hindenburg report—released on 24 January last year—that had alleged various malpractices at the group’s companies. The report hammered its shares, forcing its flagship firm to cancel a $2.4 billion share sale. The Adani Group had denied the allegations.
Early this month, the apex court placed its trust in the markets regulator and dismissed petitions seeking a separate investigation into Hindenburg Research’s allegations against the group.
The group, on the back of the favourable court order, expects more foreign investors to put money into the conglomerate, as it taps into international debt markets to aid its expansion plans. The Hindenburg saga had made the conglomerate “untouchable" for private banks and sovereign funds, whose boards turned wary of its proposals.
The group has initiated the process to buy six Pilatus PC-24 aircraft, according to two people aware of the matter. Currently, the group owns six private jets—two Embraer Legacy 650; and one each of Bombardier Global 6500, Bombardier Challenger 605, Hawker Beechcraft 850 and Beechcraft B-200—and two helicopters.
The aircraft will be purchased from the resale market by Karnavati Aviation Pvt. Ltd, the group’s aviation arm that houses all its jets.
“The company is not buying new aircraft, but (buying them) from the resale market, which means it should cost them over ₹300 crore to buy all six aircraft," said a top executive at a private jet operator company on the condition of anonymity. “The plane can fly to any part of the country and can also land on difficult runways under difficult conditions. So, it is an apt aircraft for domestic usage."
The executive added that if the company had decided to buy new airplanes, six new Pilatus PC-24 would have cumulatively cost around ₹450 crore.
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 the deliveries are likely to be spread over a long period and can go up to 18 months for all six deliveries to arrive.
A private jet industry watcher, however, said the deliveries may be sooner, adding the company may be looking at putting its business jet aircraft for commercial usage.
Another industry watcher, however, said commercial plans are unlikely. “Any company buying so many aircraft in one go would have meant that a plan to enter into the business jet renting space," the person said. “[But] since it is the Adani Group, the company may be looking at using them for its captive requirements since it is expanding."
According to industry estimates, India has about 150 business jets with large conglomerates owning most of these aircraft. Conglomerates like Mukesh Ambani-led Reliance Industries Ltd own the most private jets in the country—their largest aircraft being the Airbus Charter Jet 319.
Still, India’s tally is much lower than the estimated 3,500 business jets in the US, 970 in Mexico, 490 in Germany and 300 in Venezuela.
The segment is set to register healthy growth, as the general elections due this year would give a big boost to business jet flights in the country.
The aircraft induction at the Adani Group is also happening after it got a clean chit from the Supreme Court on the Hindenburg report—released on 24 January last year—that had alleged various malpractices at the group’s companies. The report hammered its shares, forcing its flagship firm to cancel a $2.4 billion share sale. The Adani Group had denied the allegations.
Early this month, the apex court placed its trust in the markets regulator and dismissed petitions seeking a separate investigation into Hindenburg Research’s allegations against the group.
The group, on the back of the favourable court order, expects more foreign investors to put money into the conglomerate, as it taps into international debt markets to aid its expansion plans. The Hindenburg saga had made the conglomerate “untouchable" for private banks and sovereign funds, whose boards turned wary of its proposals.
Six business jets on way to Adani Group | Mint - Mint
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