Nextant Aerospace to woo Indian entrepreneurs with business jets that cost less & fly more
American company Nextant describes itself as "the world's only business jet remanufacturer". For lack of a better business allegory, let's say the company is to the business jet market what the neighbourhoodmechanic is to an automobile aficionado. It replaces the innards of business jets that have run their course to produce, or rather reproduce, a new jet. Out come those well-worn engines and instruments and in go spick-and-span replacements. Put simply, Nextantrestores worn-out jets.
Importantly for the customer, the fruits of its labour are attractive from a cost perspective. At $4.5 million, the "remanufactured" jets are roughly half the price of comparable new jets, according to the company. However, Nextant works only on one brand of jets - the Hawker Beechjet 400A/XPs.
The company is preparing "a massive push" into the Indian market where, it says, its Nextant 400XTs (as the jets are known) could have a strong impact on the region's business aviation market because not only are these a cheaper alternative to new planes, but they also improve operating costs by 30%.
The 400XT will be able to fly four passengers and their luggage from Delhi to destinations like Riyadh and Beijing on a single tank of fuel, president Sean McGeough said in an email interview. The company sees a huge opportunity in India because entrepreneurs who may not have been able to buy a new aircraft might warm up to the idea of buying one that cannot take further hits in depreciation.
PERFECT TIMING
Nextant couldn't have chosen a better time to enter India, according to analysts and existing players. The business jet market in the country is poised to nearly double in the next five years, according to a report published earlier this week by global consultancy firm PwC, which was commissioned by the lobby group Ficci(see Just in Time).
The industry group Business Aircraft Operators Association too is as sanguine about the Indian jet market. India became the second-largest business jet market in the Asia-Pacific region last year with a fleet of 165: it has grown more than six times in the past seven years. Only China, with 220, boasts more such aircraft in the region.
Research by Nextant too points to the same. The Indian jet market is not only growing in the long term, but there are also a number of jets up for sale. How does a company tap people ridding themselves of jets? Nextant believes many of these owners will still want a private jet. What matters to them is more value for money (in other words, cheaper options) and lower operational costs.
For the past year or so, Nextant has hit the sweet spot in terms of sales, delivering planes to customers in markets as diverse as West Asia and Europe (see Flying High on Biz Jets). It is looking for similar results in India. McGeough, who joined the Ohio company last month after heading international operations at Hawker Beechcraft Corp, sheds light on the Indian business jet market, the company's strategy and potential for growth in India. Excerpts:
THE BUSINESS MODEL
Nextant Aerospace is the world's only business jet remanufacturer. We look to bring unmatched range, efficiency, and performance to the entry-level business jet market, at a cost that is less than half that of a comparable aircraft.
The Nextant 400XT is a remanufactured Beechjet 400A/XP equipped with Williams FJ44-3AP engines and Rockwell Collins Pro Line 21 integrated avionics suite. The new aircraft also benefits from significant aerodynamic enhancements, including newly designed nacelles (streamlined enclosures for engines), pylons and an improved engine-mounting configuration. The 400XT is delivered as a new aircraft with a two-year, full aircraft warranty.
The remanufacturing process results in a fundamentally new aircraft at prices closer to that of a pre-owned aircraft, creating value for purchasers of light jets. In addition, Nextant provides customers with the same new aircraft purchase experience they expect from a major aircraft manufacturer. Customers also have control of the interior completion of their 400XT, and are able to visit our design centre to collaborate on every detail."
THE INDIAN MARKET
The Indian market is showing a huge potential for growth. Our research reveals that 17% of Asian entry-level jets, or 87 aircraft, are based in India, with an estimated value of around $285 million.
The Nextant 400XT can fly four passengers and their luggage from New Delhi to destinations such as Riyadh and Beijing on a single tank of fuel. This flexibility makes it an extremely attractive proposition to businesses looking to increase their international footprint.
Despite government and financing regulations remaining a challenge for the growth of business aviation in India, the country has seen a continued demand for entry-level jets over the past decade."
THE GAME PLAN
Our analysis reveals that between 2007 and 2011, 33 entry-level aircraft were delivered to the Indian market. This represents an increase of almost 100% in deliveries compared with the period 2002 to 2006, and this is a strong indicator of the appetite for business aviation in India.
Our strategy is to engage with our key clientele across India and highlight the 400XT's unparalleled range, efficiency and value. We are confident that the 400XT's proposition, which offers superior range and efficiency at a cost that is the equivalent of paying 50 paise to the rupee when compared to similar aircraft, will prove popular across the country. We believe this will be extremely attractive to both corporates and individuals looking for their first business jet or those looking to increase performance while cutting overhead costs.
The 400XT is also compliant with Indian regulations, which only allow import of aircraft that are less than 15 years old, as Nextant airframes are typically 5-10 years old."
THE TARGETS
While we cannot give sales forecasts, we can confirm that we are looking to increase our sales backlog, which currently stands at $175 million. Our key demographic in the market is Indian businessmen and entrepreneurs, who increasingly acknowledge the benefits of business aviation for its convenience and flexibility."
THE OPPORTUNITY IN INDIA
he global business jet market was hit by the financial crisis in 2008, and its consequences are still being felt around the world. We have noted an upturn in the market in recent years, but customers are still acutely aware of the importance of cost control and are focused on paying a highly competitive and fair price for their aircraft. At the same time, they also want the latest technology to improve efficiency and keep maintenance costs down.
The Nextant 400XT is the perfect solution to this, with a base price that is half the price of a comparable aircraft, while its focus on advanced technology means that it can boast a 30% improvement in operating costs compared with some other similar aircraft. The 400XT's 50% extended range means that it can carry four passengers up to 2,000 nautical miles. This range was demonstrated this week when the aircraft flew non-stop from Dubai to Bangalore - a journey that marks its maiden voyage to India.
About 8% of India's entry-level fleet are up for sale. This means that there is an active marketplace where many current business aircraft owners are selling their existing aircraft and are looking to buy replacements that are more fuel efficient and offer better value for money."
Source : BINOY PRABHAKAR,ET BUREAU
Nextant Aerospace is one of its kind in the world, and now it plans to woo Indian entrepreneurs with business jets that cost less and fly more
American company Nextant describes itself as "the world's only business jet remanufacturer". For lack of a better business allegory, let's say the company is to the business jet market what the neighbourhoodmechanic is to an automobile aficionado. It replaces the innards of business jets that have run their course to produce, or rather reproduce, a new jet. Out come those well-worn engines and instruments and in go spick-and-span replacements. Put simply, Nextantrestores worn-out jets.
Importantly for the customer, the fruits of its labour are attractive from a cost perspective. At $4.5 million, the "remanufactured" jets are roughly half the price of comparable new jets, according to the company. However, Nextant works only on one brand of jets - the Hawker Beechjet 400A/XPs.
The company is preparing "a massive push" into the Indian market where, it says, its Nextant 400XTs (as the jets are known) could have a strong impact on the region's business aviation market because not only are these a cheaper alternative to new planes, but they also improve operating costs by 30%.
The 400XT will be able to fly four passengers and their luggage from Delhi to destinations like Riyadh and Beijing on a single tank of fuel, president Sean McGeough said in an email interview. The company sees a huge opportunity in India because entrepreneurs who may not have been able to buy a new aircraft might warm up to the idea of buying one that cannot take further hits in depreciation.
PERFECT TIMING
Nextant couldn't have chosen a better time to enter India, according to analysts and existing players. The business jet market in the country is poised to nearly double in the next five years, according to a report published earlier this week by global consultancy firm PwC, which was commissioned by the lobby group Ficci(see Just in Time).
The industry group Business Aircraft Operators Association too is as sanguine about the Indian jet market. India became the second-largest business jet market in the Asia-Pacific region last year with a fleet of 165: it has grown more than six times in the past seven years. Only China, with 220, boasts more such aircraft in the region.
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Research by Nextant too points to the same. The Indian jet market is not only growing in the long term, but there are also a number of jets up for sale. How does a company tap people ridding themselves of jets? Nextant believes many of these owners will still want a private jet. What matters to them is more value for money (in other words, cheaper options) and lower operational costs.
For the past year or so, Nextant has hit the sweet spot in terms of sales, delivering planes to customers in markets as diverse as West Asia and Europe (see Flying High on Biz Jets). It is looking for similar results in India. McGeough, who joined the Ohio company last month after heading international operations at Hawker Beechcraft Corp, sheds light on the Indian business jet market, the company's strategy and potential for growth in India. Excerpts:
THE BUSINESS MODEL
Nextant Aerospace is the world's only business jet remanufacturer. We look to bring unmatched range, efficiency, and performance to the entry-level business jet market, at a cost that is less than half that of a comparable aircraft.
The Nextant 400XT is a remanufactured Beechjet 400A/XP equipped with Williams FJ44-3AP engines and Rockwell Collins Pro Line 21 integrated avionics suite. The new aircraft also benefits from significant aerodynamic enhancements, including newly designed nacelles (streamlined enclosures for engines), pylons and an improved engine-mounting configuration. The 400XT is delivered as a new aircraft with a two-year, full aircraft warranty.
The remanufacturing process results in a fundamentally new aircraft at prices closer to that of a pre-owned aircraft, creating value for purchasers of light jets. In addition, Nextant provides customers with the same new aircraft purchase experience they expect from a major aircraft manufacturer. Customers also have control of the interior completion of their 400XT, and are able to visit our design centre to collaborate on every detail."
THE INDIAN MARKET
The Indian market is showing a huge potential for growth. Our research reveals that 17% of Asian entry-level jets, or 87 aircraft, are based in India, with an estimated value of around $285 million.
The Nextant 400XT can fly four passengers and their luggage from New Delhi to destinations such as Riyadh and Beijing on a single tank of fuel. This flexibility makes it an extremely attractive proposition to businesses looking to increase their international footprint.
Despite government and financing regulations remaining a challenge for the growth of business aviation in India, the country has seen a continued demand for entry-level jets over the past decade."
THE GAME PLAN
Our analysis reveals that between 2007 and 2011, 33 entry-level aircraft were delivered to the Indian market. This represents an increase of almost 100% in deliveries compared with the period 2002 to 2006, and this is a strong indicator of the appetite for business aviation in India.
Our strategy is to engage with our key clientele across India and highlight the 400XT's unparalleled range, efficiency and value. We are confident that the 400XT's proposition, which offers superior range and efficiency at a cost that is the equivalent of paying 50 paise to the rupee when compared to similar aircraft, will prove popular across the country. We believe this will be extremely attractive to both corporates and individuals looking for their first business jet or those looking to increase performance while cutting overhead costs.
The 400XT is also compliant with Indian regulations, which only allow import of aircraft that are less than 15 years old, as Nextant airframes are typically 5-10 years old."
THE TARGETS
While we cannot give sales forecasts, we can confirm that we are looking to increase our sales backlog, which currently stands at $175 million. Our key demographic in the market is Indian businessmen and entrepreneurs, who increasingly acknowledge the benefits of business aviation for its convenience and flexibility."
THE OPPORTUNITY IN INDIA
he global business jet market was hit by the financial crisis in 2008, and its consequences are still being felt around the world. We have noted an upturn in the market in recent years, but customers are still acutely aware of the importance of cost control and are focused on paying a highly competitive and fair price for their aircraft. At the same time, they also want the latest technology to improve efficiency and keep maintenance costs down.
The Nextant 400XT is the perfect solution to this, with a base price that is half the price of a comparable aircraft, while its focus on advanced technology means that it can boast a 30% improvement in operating costs compared with some other similar aircraft. The 400XT's 50% extended range means that it can carry four passengers up to 2,000 nautical miles. This range was demonstrated this week when the aircraft flew non-stop from Dubai to Bangalore - a journey that marks its maiden voyage to India.
About 8% of India's entry-level fleet are up for sale. This means that there is an active marketplace where many current business aircraft owners are selling their existing aircraft and are looking to buy replacements that are more fuel efficient and offer better value for money."
Source : BINOY PRABHAKAR,ET BUREAU
