Private jets likely to get a fractional policy lift

Private jets may be within reach of more Indians in the days to come, with the government working on a policy framework to facilitate fractional ownership of these aircraft.

- Anu Sharma

A draft of the policy, which will apply to both nonscheduled commercial flight operations or charters, and for private usage will be released for public feedback within a couple of months, two people aware of the matter said.

Fractional ownership, a concept that is still gaining traction in India, allows an entity to buy a stake in an aircraft and share its flying hours and crew with other part-owners. As per the draft framework, anyone who wishes to be such a part-owner must hold a certain minimum stake, which is likely to be set between 5% and 10%. The model is likely to involve aircraft that can seat a maximum of 20 passengers, the people said on the condition of anonymity.

To make the policy more palatable, the government is looking at limiting regulatory compliances as per Directorate General of Civil Aviation (DGCA) norms and civil aviation requirements for the entity that will manage, operate and maintain the aircraft, and keep out those with fractional ownership in the aircraft, one of the two people mentioned earlier said.

"There is an intent to provide greater flexibility to those who make fractional investment in the aircraft so that it is safely operated and optimally utilized," one of the officials said.

Queries sent to the civil aviation ministry remained unanswered until press time.