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Ratan Tata readies plan to enter aviation biz

MUMBAI: Ratan Tata may have given up plans to get into civil aviation but the chairman of the $72 billion Tata Group is putting pieces together to be a major player in the general aviation space. Tata, a trained pilot, is working out deals with international players for business jets, helicopters as well as for aircraft management and maintenance services. Investments in this space are being driven by the groups two main holding companies, Tata Sons and Tata Industries. The group is in talks with Florida-based Avantair to establish a partnership in India, where use of private planes by companies is on the rise. Avantairs business model is of fractional ownership, giving individuals and businesses the benefits of whole aircraft ownership at a fraction of the cost. The firm intends to emulate its US programme here, said sources familiar with the plans. Discussions including the equity structure of the venture are at an early stage, they added. If things work out as planned, it will be the salt-tosoftware conglomerates second investment in a fractional jet operator after Singapores BJETS in February 2008. The groups hospitality arm Indian Hotels (Taj chain) holds about 62% stake in BJETS, which has a fleet of four aircraft comprising of Cessna and Hawker jets. The Tata Group is also set to form a 50:50 joint venture with Hong Kongs Metrojet to offer aircraft maintenance services to the growing Indian corporate aviation market. The country has some 130 private jets, accounting for 12% of global market that analysts expect to double in the next ten years. The group plans to separate its small aircraft management services unit housed under Taj Air into the new JV company, sources explained.

                                                                                                               
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