BJETS plans Asia's first fractional ownership operation

Asia is set to welcome its first dedicated fractional ownership operation in the second quarter of 2008 after BJETS, a Singapore-based company, unveiled its plans at the show.

The company announced firm orders for 20 Cessna Citation CJ2+ and 20 Hawker 850XPs and 900XPs. The first aircraft will be delivered within a month and 15 are expected to be in service by the end of 2008.

All will be registered in India, and based primarily in Mumbai and Singapore. Apart from fractional ownership, the company will also offer block charter and aircraft management services.

"BJETS will have the biggest fleet of private jets in Asia in its very first year of operations," says Mark Baier, BJETS chief executive.

"There are no dedicated business jet fleets in Asia, and we provide guaranteed availability for our customers. It is something the region direly needs and we believe that our model can be very successful."

Its major shareholder is the privately held USA-based investment firm Briley Group, whose chief executive, Bala Ramamoorthy, set up BJETS in 2006. Its other backer is Indian Hotels Company, operator of the Taj brand of hotels in India and part of international conglomerate Tata Group.

India's growing economic wealth has led many in the industry to believe it represents the biggest potential for the growth of business aviation in the region.

But the country also faces numerous challenges, including its woeful infrastructure and an acute shortage of maintenance facilities dedicated to business aviation.

One experienced charter broker based in South-East Asia welcomed BJETS' entry but cautioned that it faced numerous challenges.

"Asia is still pretty restrictive when it comes to landing permits, overflights and even basic things like ground handling," he says.

"But maybe this is just what the region needs - someone who has the financial backing taking a punt and putting aircraft around the region. It is a risky move to own your aircraft and put it out there, but it could also pay off very handsomely if it proves to be successful."

Source: FlightGlobal.com