Financial Daily from THE HINDU group of publications
Wednesday, Mar 08, 2006
States - Maharashtra
Club One Air begins services in Mumbai
Mumbai , March 7
Club One Air, the `aircraft fractional ownership' company that commenced services in August 2005, announced the introduction of its services here on Tuesday. Its expansion plans include services from Bangalore and Kolkata by the year-end.
The company currently has 14 fractional owners for its aircraft and expects to have around 60 by the year-end.
In an attempt to create greater awareness about the concept in the country, Club One Air has also launched the Jet Card.
The Jet Card fractional ownership programme is targeted at high net-worth individuals who aim to own an aircraft for a minimum of a year. The card comes in denominations of 25 and 50 hours of flying time usable within a calendar year.
Mr Manav Singh, Managing Director, Club One Air, said, "the Jet Card would allow an individual or a company to fly with Club One Air for a given time within which they will be able to better understand their own requirements and patterns."
The company has a fleet of nine aircraft comprising five business jets of the Citation Excel and Citation 2 series, two Augusta helicopters, a Turboprop King Air 200 and Eurocopter EC 130, stationed in Delhi and Mumbai. It plans to augment its fleet to 20 aircraft by the year-end.
Fractional ownership, which is popular in the West, gives the aircraft owner a sense of `ownership' and fractional and legal rights based on his share.
Fractional ownership of a Citation II aircraft for 10 years, with an annual usage of 100 hours, costs up to Rs 2 crore, while a 1/8th share of the larger, Citation Excel would cost about Rs 4 crore. Besides, the owner would have to pay monthly maintenance on aircraft, varying from Rs 4 lakh for a Citation II to Rs 6 lakh for the Citation Excel. Further, the owner would have to bear the cost of aviation fuel (Rs 1.25 lakh per hour on the Citation II and Rs 1.95 lakh/hour on the Citation Excel) for each flight.
Club One Air has assets worth Rs 200 crore, which comprises fractional owner deposits, debt and equity.
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