OFF RADAR. Taking off from Kochi

Aircraft brokering? Yes, you read it right. Like car brokering and real-estate brokering—helping to buy and sell new and pre-owned jets or helicopters, for a fee? Yeah, you’re spot on.

And of all places, in the tier-2 city of Kochi? “Why not Kochi?” counter questions Robin Cherian, Director, K-Air. “In this line of business, where you are located is immaterial,” he says. “What matters is your expertise, your contact network.”

K-Air, which started off as a small air-chartering firm in Kochi in 2005, has representative offices in five countries including the US and UAE. From air-chartering, K-Air now calls itself a general aviation company and claims to be `the only Indian aircraft sales company with a global footprint.’ Chartering and providing operation management are among the services offered by the company. But facilitating sale and purchase of a range of aircraft—mainly executive jets, turbo propellers and helicopters—is the core of the company’s business.

K-Air operates in a tough environment. A 2014 study by Business Aircraft Operators Association (BAOA) shows that from a high of 73 in 2008, aircraft imported into India dropped to just 13 in 2013. Custom duty, high airport charges and insufficient infrastructure are the main reasons for the decline, said the BAOA study.

Diversified offering To cope up with the tough environment, K-Air expanded its services and now also provides consultancy to its clients. Many of its clients - companies and corporate executives and leading entrepreneurs - would want to buy an aircraft, but are unaware of the options. “We make a cost-benefit analysis for the client taking into account his or her needs such as the frequency of travels, comparative costs of chartering, owning an aircraft and commercial flight,” says Cherian. Many companies do not need to invest on a new aircraft. For such clients, a second-hand aircraft, which is cheaper (a seven-year old aircraft comes at half the price of a new one), would be the best option.

K-Air then scouts for the aircraft that fits the client’s needs. Its technicians and engineers inspect the aircraft for operational efficiency and amenities. It also gets the complicated paperwork and legal procedures done. In some cases, K-Air helps clients hire the crew and also takes care of operation management and maintenance. “Thus, we take care of a whole range of services required by a potential aircraft owner,” says Cherian. K-Air is the India agent of Kaman, a leading aviation company in the US, for its K-Max helicopters.

Starting off K-Air was started by a small group of people— a pilot, an engineer, an Army officer, and an executive from a commercial airline. This expertise helped the team build a reputation. The firm now has 22-member staff. Cherian says the cumbersome civil aviation rules, the prohibitive ground handling charges and the shortage of parking space at the airports are some of the reasons why many corporate honchos still don’t own an aircraft.

“Top corporate leaders are opting for company-owned jets for their frequent business trips,” says Cherian. “They value their time, and their time is money for their companies,” he adds.

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