Tuesday, March 24, 2015

Why are super-rich Indians buying helicopters and why they are different from their counterparts in West

Helicopters cost between $1.2 million and $15 million, depending on the size and type of machine. An hour of flying a chopper, accounting for insurance, landing fees, fuel and maintenance costs, and again depending on whether it has single or twin engines and its seating capacity, could set back its billionaire owners by `50,000 to Rs 1.75 lakh. Peanuts, as our finance minister would say.
In any case, as BS Singh Deo, managing director of Bell Helicopter India says, expenses related to helicopters are more than offset by cutting down the travel time.

Pradeep Srivastava, a helicopter pilot, says almost every day he encounters people wishing to buy copters. "They are taken aback only for a moment when they hear the price."
That's not to suggest they are reckless investors. "When Indians make an investment, they want to be sure it pays off," says Estill. "They look at the value they are getting. They want proof that the copter will operate as per the promised costs. They want to know how we will support the copter. They want us to train their personnel," he says.
Different Customers
Helicopters, from the accounts of Estill and his colleague Mick Maurer, president of Sikorsky Military Systems, offer a peek into the vanities and quirks of their owners. Maurer says one of his customers - a head of state from West Asia - wanted a shower in his copter. "When he came off the copter to meet people, he wished to be refreshed and clean. I said: 'Yes sir, you want a shower, you got one'."
Chopper Clients: Some of the private helicopter owners in India
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Sikorsky has a customer in the UK who goes hunting with friends to Scotland in a chopper. Another client flies from building to building in a chopper for fear of kidnapping, says Maurer. Sikorsky, says Maurer, is never short of such "interesting" clients. With bankers and celebrities in New York, the imagination can run wild with interiors, he says.
/photo.cms?msid=12127331Indians are not as demanding. Nor have they embraced choppers except to save time and for convenience. Their needs are limited to a television, a refrigerator and video games for the children.
One of Sikorsky's clients happens to be India's richest man, Mukesh Ambani, the chairman of Reliance Industries. Ambani's new home, Antilia, has three helipads. Sikorsky executives say Mukesh's wife Nita Ambani was very involved with designing the interiors of the two choppers. "We customised the interiors the way Mrs Ambani wanted," says Walia.
The interiors can also be configured for comfort with leather-clad seating accompanied by a drinks cabinet, a la luxury sedan of the skies. If these are unexciting demands compared with the West, they are a testament to a still fledgling market.
Diverse Clientele
The typical chopper client in India hails from businesses as diverse as petroleum and real estate. The majority belong to the offshore oil business like Reliance Industries' Mukesh Ambani and the Ruias of Essar. RWSI's Sridharan says at least 25 copters are being used daily to reach offshore oil platforms. Oil has long been the primary segment, but now corporate travel is driving sales.
Big business groups like the Ruias rely on choppers to fly top managers for strategic meetings. "Everybody is running a tight schedule," says a spokesman. Even smaller companies hire copters from charter companies for factory visits.
Chopper activity, says Airworks' Menon, is no longer confined to Mumbai, Surat and Hazira. It has moved to places like Bhuvaneshwar and Guwahati, he says. "In a sense, copters are driving industrial growth," he says.
Companies also use choppers for medical evacuations. An AgustaWestland copter was used to provide air ambulance cover at the inaugural Indian Formula 1 race last year. Still, copter use boils down to time and convenience.
The super affluent have the money, but lack time. They might want to fly to 3-4 sites a day. They have to be back for a business meeting or return home by evening. How long would that take by road?
Helicopters are, in that sense, godsend. They save time with their twin engines, plane-like streamlining and a top speed of around 350 kmph. Choppers can fly at night, bad weather, over open water and across built-up areas.
Easy Go, Easy Come
The important thing to note, according to Walia, is that people are going from point A to point B, completely bypassing the road network. "So if Mr Ambani is going from Mumbai to his refinery in Jamnagar in a copter, he can have people with him, he can have his meeting and by the time he reaches after an hour and a half... he's already got his feedback, he's already made up his mind about a decision."
Not only is there plenty of room on board to do business - there's enough leg space so that you don't have to knock each other's knees, says Walia - the interiors of a chopper have been "made quiet" so that people can talk without having to shout.

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