Market Trends of Asia-Pacific Charter Jet Service Industry
Light Aircraft is Anticipated to Grow with the Highest CAGR During the Forecast Period
The light aircraft segment is expected to grow significantly during the forecast period. Light private jets provide fast and comfortable transport for as many as seven passengers looking to travel to regional destinations. With the flexibility to land at nearly any airport, these aircraft are often the choice for family vacations, making ideal business jets.
According to the Air Charter Report of 2022, regarding the size category, the Asia-Pacific market shifted away from larger-sized charter jets. Although long-range charter aircraft have been witnessing significant growth in the past few years, light charter aircraft, which were primarily used for domestic flying, has been seen as being the most popular category since 2020. In addition, the previous COVID-19 outbreak and the subsequent travel restrictions followed changes in charter operators’ fleets in many Asia Pacific countries, namely the shrinking of large jet charter fleets and the expansion of light jet charter fleets. Thus, the growth of light charter jets in various countries in the Asia-Pacific is expected to boost the market significantly during the forecast period.
India Will Showcase Remarkable Growth During the Forecast Period
India is projected to show the highest growth during the forecast period. The increasing number of high-net-worth individuals, coupled with the growing number of business jet deliveries in India, is driving market growth across the country. However, infrastructure status, airspace limitations, and regulations throughout the country are often the paramount challenges that make it difficult to attain the aircraft utilization targets for the charter operators in the long run.
In India, the percentage of High-Net-Worth Individuals (HNI or HNWI) has gone up in recent times owing to a surge in business opportunities, foreign investments, and new-age digital entrepreneurs. This has led to a tectonic shift in the wealth management industry. The ranks of India's ultra-high-net-worth individuals (UHNWI) are estimated to rise in the coming years. In addition, the billionaire population of India has witnessed growth from 161 people in 2022 to 145 people in 2021, and it is also expected this trend will change during the forecast period. Moreover, the Indian market for UHNWI investments is still very nascent and yet to be explored to its full potential.
India is witnessing growth in terms of business jet deliveries. According to the aviation regulator Directorate General of Civil Aviation (DGCA), non-scheduled operator permit holders in India had a fleet of 330 charter aircraft as of April 2022. Moreover, for airlines in India, demand for different types of private charter flights witnessed a significant increase in December 2021 after India reopened following a strict, six-month-long Covid lockdown, and this will lead to a positive outlook and growth for charter jets market within India during the forecast period.
