India Helicopter Leasing Market Size, Share & Industry Analysis, By Helicopter (Light Helicopter, Medium Helicopter, and Heavy Helicopter), By Light Helicopter (HAL ALH Dhruv (CFW), Hindustan Dhruv (CS), HAL LUH Helicopter, AW -109, Bell 407, AS-350, H-125, AW-119, and Others), By Medium Helicopter (Bell 412, Dauphin 365, and Others), By Lease Type (Dry Lease and Wet Lease), By Application (Offshore Commercial Operations, Emergency Medical Services (EMS), Firefighting, Search and Rescue (SAR), and Others), and Country Forecast, 2024-2032

The India helicopter leasing market size was valued at USD 183.9 million in 2023. The market is projected to grow from USD 201.6 million in 2024 to USD 504.3 million by 2032, exhibiting a CAGR of 12.1% during the forecast period.

The helicopter leasing market in India is experiencing significant growth driven by various factors. These include increasing requirements for Emergency Medical Services (EMS), corporate travel, and tourism and infrastructure development projects. Government initiatives, such as Regional Connectivity Scheme (RCS) and UDAN aim to enhance regional connectivity and accessibility, thereby promoting helicopter usage and improving the growth of the market for aircraft leasing in India.

Additionally, helicopters are undergoing various technological improvements and modernizations, which enhance their safety, efficiency, and environmental sustainability. These advancements improve operational efficiency and attract new customers by offering a higher level of service and safety. Companies understand the cost of leasing and ownership, and have access to new helicopters without spending a lot of money. Advances in helicopter technology to improve operational capabilities and safety support this trend.

The COVID-19 pandemic had posed a major challenge to the Indian helicopter rental market, resulting in reduced traffic and financial pressure on operators. Owing to which many operators faced financial problems and therefore re-evaluated their lease agreements.

India Helicopter Leasing Market Trends

Customized Solutions for Helicopter Leasing by Major Stakeholders is a Prominent Market Trend

Helicopters with modular designs that allow for easy customization and reconfiguration are gaining popularity. This flexibility enables operators to adapt helicopters for various missions, such as SAR and IP transport without the need for extensive modification. Benefits of customization include versatility and cost efficiency, among others. The technical integration of this includes quick-change interiors, installation of specialized equipment, and others.

For instance, India’s largest helicopter operator, Pawan Hans Limited has leveraged modular designs to expand its service offerings and operations. In February 2023, Pawan Hans Ltd. initiated the provision of helicopter services on six routes in Assam. Launched under the RCS UDAN program, the new helicopter service provides connectivity to the Dibrugarh-Jarhat-Tezpur-Guwahati-Tezpur-Jarhat-Dibrugarh network.

Such flexibility allows operators to maximize the utilization of their fleet, reduce operational costs, and meet the diverse needs of their clients. Furthermore, as demand for versatile helicopter services continues to grow, the inclination toward modular designs and customizations is expected to become more prominent and boost the helicopter leasing market growth in India.

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India Helicopter Leasing Market Growth Factors

Surge in Demand for Corporate and VIP Travel Services Will Catalyze Growth of India Helicopter Leasing Market

The combination of factors, such as increasing corporate demand, expanding VIP market, infrastructural improvements, technological advancements, and supportive government policies is expected to drive the India helicopter leasing market growth. As more companies and individuals realize the benefits of helicopter transportation, leasing becomes an attractive way to access new aircraft and meet their travel needs.

Moreover, India has observed a significant increase in the number of ultra-high net worth and high net worth individuals, corporate executives, and government officials. This demographic opts for luxury travel options, including private helicopter charters for personal and business use. Helicopter rental companies can respond to this growing demand by offering customized VIP and VVIP services and amenities, such as on-board meals and ground transportation. In September 2023, India planned to add 12 new VVIP helicopters with advanced safety features. The government planned to acquire these helicopters for the President, Vice President and the Prime Minister. Currently, the main guide uses Russian MI 17V5 helicopters, which do not meet the standards of guides in other countries.

Furthermore, helicopter operators, such as Blueheights Aviation and Global Vectra Helicorp, offer a range of services tailored to the needs of affluent clients. The services include customized itinerary, luxury amenities, attractive packages, and others.

Market to Show Significant Growth Owing to Rise in Infrastructure Development and Government Support

The Indian government is investing in aviation infrastructure, including the development of new heliports and helipads, to support the growing demand for helicopter services. The government has introduced several policies to promote the growth of aviation, including helicopter services. Projects, such as the Regional Connectivity Scheme (RCS) aim to improve air connectivity in small towns and cities and create new opportunities for helicopter operators. The government has also taken steps to ease regulations and facilitate business in the aviation markets.

The government’s focus on developing heliports and simplifying regulatory frameworks is creating a favorable environment for helicopter leasing and operations in India. In December 2023, the Uttar Pradesh government unveiled its plan to tax helicopters at key tourist spots, aiming to boost the civil aviation sector. The government signed an agreement with Rajas Aero Sports and Adventures Private Limited to operate flights between Agra and Mathura for 30 years.

In February 2023, the Himachal Pradesh government granted permission to operate eight helicopters in different parts of the state. In the first phase, heliports will be constructed at Sasan in Hamirpur, Rakar in Kangra, Sultanpur in Chamba, Pirdi in Kullu, Jispa, Sisu and Sarvo in Kinnaur.

RESTRAINING FACTORS

High Operational Cost to Reduce Demand for Helicopter Leasing Services

Helicopter operations are expensive as they include maintenance & fuel expenses, insurance, and pilot fees. These costs can be high for small operators or those new to the market. In addition, the aircraft financing space for helicopter leasing in India is still growing, with many operators relying on external financing options that may result in higher costs.

According to a report from the Confederation of Indian Industry (CII) in 2024, high taxes on Aviation Turbine Fuel (ATF) in India pose several challenges for the domestic aviation industry. ATF takes a major share of the airline's operating costs, sometimes reaching 40-45%, in contrast to international models whose fuel costs fall in the range of 20-30%.

Moreover, the operation of helicopters in India is subject to strict regulations laid down by the Directorate General of Civil Aviation (DGCA). Meeting these requirements, such as pilot training, maintenance documentation, and airworthiness certification will increase operating costs.

India Helicopter Leasing Market Segmentation Analysis

By Helicopter Analysis

Light Helicopter Segment Held Leading Market Share in 2023 due to Growing Fleet Expansion Programs

Based on helicopter, the market is segmented into light helicopter, medium helicopter, and heavy helicopter.

The light helicopter segment held the highest India helicopter leasing market share in 2023. The rapid fleet expansion of light helicopters in India is a prominent reason that will help the segment dominate during the study period. For instance, in July 2023, the Indian Army planned to lease 20 light helicopters and ground support equipment for five years from two bases (within the army's air bases). The lease includes all maintenance support including Performance Based Logistics (PBL) and flight crew training (including instructors) during the lease term.

The medium helicopter segment is estimated to be the fastest-growing segment during the forecast period. India's vast geographical area and complex terrain make it highly desirable for air connectivity. Medium-range helicopters are ideal for this need, offering a balance between power and handling. Owing to this, there is a significant increase in the lease transactions for medium lift helicopters in India.  In February 2024, the Chairman and Managing Director of Hindustan Aeronautics Ltd. indicated that the company plans to pursue the military and civil certification processes simultaneously for its medium lift helicopter. This strategy aims to ensure that the helicopter is available for both military and civilian use, particularly in the heli-tourism sector, at nearly the same time.

By Light Helicopter Analysis

Growing Demand for Emergency Services in India Will Help Others Segment to Lead

Based on light helicopter, the market is divided into HAL ALH Dhruv (CFW), Hindustan Dhruv (CS), HAL LUH Helicopter, AW -109, Bell 407, AS-350, H-125, AW-119, and others.

The others segment will account for the largest market share during the forecast period of 2024-2032. This segment includes H125, H145, AW 109, BK117, and many others. The demand for Helicopter Emergency Medical Services (HEMS) is increasing in India due to the need for quick medical support and timely transport of patients, especially those living in remote and rural areas. Light helicopters are ideal for this task due to their strength and ability to enter difficult areas quickly.

The HAL LUH helicopter segment will witness significant growth during the forecast period. The segment’s growth is owing to the growing use for this helicopter to replace the aging fleets of Cheetah and Chetak helicopters operated by the Indian armed forces. In January 2023, the Indian Ministry of Defense approved the leased units of 12 Lunar Helicopters (LUH) from Hindustan Aviation Corporation (HAL). According to the information released, the LRIP1 will consist of four LUHs, two for the Indian Air Force (IAF) and two for the Indian Army, and were expected to be delivered by March 2023.

By Medium Helicopter Analysis

Others Segment to Dominated Due to Technological Advancements and Multirole Capabilities

By medium helicopter, the market is divided into Bell 412, Dauphin 365, and others.

The others segment is projected to dominate the market during the forecast period. This segment includes HAL Prachand, AW 139, AW 169, S-76, and others. In April 2024, HAL announced that it was developing a medium lift 13-ton India Multi-Role Helicopter (IMRH) with a carrying capacity of 1500kg. HAL has recently disclosed a computer-generated model, which shows the versatility of the helicopter and can be used in troop transport, combat missions, and other operations.

The Bell 412 segment is projected to be the fastest-growing segment during the forecast period. The tourism industry of India is highly benefiting from the demand for the Bell 412 helicopters. The increase in travel and tourism in India is also anticipated to boost the segment’s growth.

By Lease Type Analysis

Dry Lease Segment Holds Leading Position Due to its Flexibility and Control for Lessees

Based on lease type, the market is categorized into dry lease and wet lease.

The dry lease segment held the highest market share in 2023 and is estimated to be the fastest-growing segment during the forecast period. In a dry lease, the lessee has full control over the aircraft, including the selection of crew, maintenance providers, and branding. This allows them to customize the aircraft to their needs and maintain their brand identity.

The wet lease segment is anticipated to display significant growth during the forecast period. Wet lease provides shorter lease terms. Shorter lease terms allow lessors to keep up with technology and offer newer models of helicopters to their customers. Owing to this advantage, many operators opt for wet lease and hence, this factor has a significant impact on the market.

By Application Analysis

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Other Applications to Dominate Owing to Increased Multi-Role Operation by Various Players

Based on application, the market is segmented into offshore commercial operations, Emergency Medical Services (EMS), firefighting, Search and Rescue (SAR), and others.

The others segment is anticipated to have the largest market share during the forecast period. This segment includes applications, such as corporate transport, utility operation, recreational activities, media, entertainment & tourism, and VIP transport, among others. There has been a notable rise in VIP transport and tourism in India as economic growth continues to increase the wealth of individuals and businesses.

The offshore commercial operations segment is anticipated to account for the highest growth rate during the forecast period. India's offshore oil & gas industry is a major driver of helicopter leasing. Companies, such as ONGC (Oil and Natural Gas Corporation) need effective transportation solutions to support their operations in remote areas.

KEY INDUSTRY PLAYERS

Key Players Are Introducing New Players through Strategic Partnerships and Procurement of Helicopters

The India helicopter leasing market is highly fragmented, with several players expanding their operations. The key industry players are focusing on promoting the entry of new players in the market through strategic alliances and acquisition of advanced helicopter models. The goal of these established companies is to increase their presence in the market, use technological advances, and expand their services by working with various stakeholders. Few of the notable new entrants include Vman Aviation Services, Acumen Aviation, and Vistajet Leasing IFSC Pvt. Ltd.

List of Top India Helicopter Leasing Companies:

• HaveUs Aerotech India (India)


• K-Air Charters (India)


• Kagiu Aviation Private Limited (India)


• Vman Aviation Services (India)


• BLADE India (India)


• Pawan Hans Limited (India)


• Heligo Charters Private Ltd. (India)


• Himalayan Heli Services Pvt. Ltd. (India)


• Heritage Aviation (India)


• Global Vectra Helicorp Ltd. (India)

KEY INDUSTRY DEVELOPMENTS:

• July 2024 – The Finance Minister of India announced legal support for financing airlines and shipping costs in India to protect airlines from financial problems. The Finance Minister helped the Maintenance, Repair, and Overhaul (MRO) department by giving a one-year period instead of the previous six months.


• June 2024 – Acumen Aviation, a premier aircraft asset management firm, unveiled its collaboration with Hanwha Aviation, a newly established commercial aircraft engine-leasing platform and a subsidiary of the Hanwha Group. Hanwha Aviation chose Acumen's flagship platform, SPARTA, to manage its entire fleet of aviation assets on lease.


• May 2024 – Haveus Aerotech India Pvt. Ltd., a leading MRO offering maintenance & repair services for aircraft components signed a Memorandum of Understanding (MOU) with Hindustan Aeronautics Limited - Accessories Division Lucknow (ADL).


• January 2024 – Acumen Aviation Leasing Pvt. Ltd. Spirit Air LLP (“Spirit Air”), the India-based domestic commuter airline and dedicated Flight Training Organization (FTO) signed a letter of intent for the leasing of aircraft to be operated by Spirit Air LLP ("Spirit Air"). Spirit Air is responsible for providing key connectivity between remote landing strips, municipal sub-regional strips, and the country's primary airports, as well as dedicating itself to training a steady stream of future pilots capable of meeting the future air travel demands.


• April 2023 – According to the International Financial Services Centre Authority (IFSCA) Biz planes, GIFT city companies leased Russian helicopters. Of the 26 lease agreements entered, 12 of them were for airplanes and helicopters.

REPORT COVERAGE

The report provides a detailed analysis of the market insights. It focuses on key aspects, such as leading companies, types, and applications of helicopter leasing. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.

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Report Scope & Segmentation