Confident to enter aviation sector Goes In For Fractional Ownership Route
By Darlington Jose Hector/TNN
Bangalore: The Bangalore-based Confident Group, largely known for its real estate forays, is now all set to sink its teeth into aviation by adopting the fractional ownership route.
The firm is awaiting clearance from the civil aviation ministry, which is expected to come through by the end of this month. Company officials told The Times of India that they are concurrently holding talks with airline companies in Europe and the US to acquire turboplanes. The group plans to start the service from March next year.
Fractional ownership of an aircraft will enable an individual ownership of the aircraft for a certain number of flying hours on payment of a one time fee. For example, a typical turboplane will cost around Rs 5 crore and a group of 10 individuals can claim fractional ownership of the plane by paying Rs 50 lakh each.
"We plan to provide 30-60 hours of flying every year for 10 years for our clients," said Confident Group chairman Roy C J. "With health and pilgrimage tourism flourishing in India we see a huge opportunity for charter services."
The company is planning to secure three to five aircraft of the Beachcraft or Cessna variety which can seat 8-10 people. There is also a move to acquire helicopters for the purpose. At the moment chartered flights would cost around Rs 60,000 for an hour, while fractional ownership can break that down to Rs 15,000.
The group plans to target high networth individuals as their clients who have the requirement of frequent travel for business and personal reasons.
Also, there are many NRIs who come down to India for a month or two, who would like to avail of such services.
CHARTING NEW COURSE
Fractional ownership of an aircraft will enable an individual ownership of the aircraft for a certain number of flying hours on payment of a one time fee.
The company plans to secure three to five aircraft of the Beachcraft or Cessna variety which can seat 8-10 people.
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