Market Trends of Asia-Pacific Charter Jet Service Industry
Large Jet Aircraft Anticipated to Register the Highest CAGR During the Forecast Period
The segment encompasses heavy jets, ultra-long-range heavy jets, and executive liners/bizliners, all boasting spacious cabins for 10 or more passengers. Heavy jets can fly non-stop for up to nine hours, covering around 4,000 nautical miles, while their ultra-long-range counterparts extend this range to about 6,000 nautical miles.
Primarily favored for corporate travel and charters, these large jets are witnessing rising demand, especially with the emerging trend of ride-hailing charter jets. These larger aircraft, capable of accommodating up to 20 passengers, offer substantial cost savings. Notable aircraft in this segment include Dassault’s Falcon 7X/8X, ACJ 319, ACJ320neo, BBJ MAX 8, BBJ 787-9, Challenger 650, Legacy 650E, Falcon 2000LXS, Falcon 2000S, Falcon 900LX, Global 5000/6000/6500/7500, and Gulfstream G500/550/600/650/650ER.
With approximately one-third of the current business jet fleets exceeding a decade in service, operators and charter providers increasingly invest in fleet modernization to boost capabilities. For instance, in March 2024, Textron Aviation secured a contract from PT Smart Aviation (PT Smart) to deliver their inaugural Cessna SkyCourier order in Indonesia. The deal includes a SkyCourier passenger variant and four Cessna Grand Caravan EXs, with deliveries slated to commence in 2026. As of December 2023, Cessna dominated the regional market, commanding a 27% share of the active fleet. It was followed by Bombardier, Gulfstream, and Embraer, with active fleet shares of 22%, 15%, and 13%, respectively.
India to Showcase Remarkable Growth During the Forecast Period
India is poised to lead the Asia-Pacific charter jet service market’s growth over the forecast period. The surge in high-net-worth individuals (HNWIs) and a rising number of business jet deliveries fuel the Indian market’s expansion. However, infrastructure limitations, airspace constraints, and regulatory hurdles persist, hindering charter operators from reaching their aircraft utilization goals.
India has seen a notable uptick in its HNWI population, attributed to expanding business avenues, increased foreign investments, and the emergence of digital entrepreneurs. This shift is reshaping India's wealth management landscape. Projections indicate a further rise in the nation's ultra-high-net-worth individuals (UHNWIs). While the billionaire count in India dipped slightly from 167 in 2023 to 161 in 2022, the trend is expected to reverse in the forecast period. Despite these figures, India's UHNWI investment market remains largely untapped, hinting at significant growth potential.
India's business jet deliveries are on the rise. As per the Directorate General of Civil Aviation (DGCA), non-scheduled operators in India boasted a fleet of 330 charter aircraft as of April 2022. With a mounting appetite for unscheduled flights, charter providers are expanding their services to new routes and introducing enticing membership programs, setting the stage for substantial market growth ahead.
