THE Akbar Group of Companies is a pioneer in private aviation and the aircraft chartering business. With a fleet of eight aircraft hired on dry lease, the group entered the aviation business in 2005 with a fixed based operations facility at Jinnah International Terminal.

Being the only chartered private jet and helicopter company in the country, Princely Jets — a subsidiary of the Akbar Group — is a litmus test for the future of this industry, which has a worldwide annual market size of $20 billion and a fleet strength of around 20,000 jets.

With over three-decade experience in the aviation sector, the group represents 12 airlines in the country. Its flagship company — Princely Travels — was established by its chairman, M I Akbar, in 1976. To-date, the group has served over 20 million passengers through a network of over 25 offices located nationwide.

With a unique, integrated service, Princely Jets is determined to ‘remain the best choice’ for private jet experience not only in Pakistan, but also in the Middle East.

Princely Jets began as a domestic business jet operator, but expanded to provide international chartering, sales and purchase expertise, aircraft management and maintenance services consultancies.

The fixed based operations (FBO) in Karachi strengthened Princely Jets’ footprint in the country, and an increase in the size of the aircraft fleet has given the company a wealth of experience in the private jet industry. It has ambitious plans for further expansion by including other key airports of the country in its portfolio, and by setting up a FBO at Lahore.

Princely Jets is an initiative of Ghouse Akbar, who is the chief executive officer of the company. After doing his BA in political science and economics from Brown University, USA, he did his MBA from INSEAD University in 2005. His thesis paper was on the feasibility of setting up an executive jet charter company in Pakistan.

In an informal chat with the writer in his office located at the Services Club, Ghouse Akbar was candid while expressing his views over government policy, taxation and regulations, which, he felt, was impeding the growth of aviation industry and chartering business.

He says private aviation is a service industry that caters to the needs of high net worth individuals and corporate entities, which require high quality and personalised private air transport service. The industry has to compete with the world’s best charter flight providers from the Middle East and Europe.

If this industry — which is in its infancy — has to progress fast, policymakers need to realise that cumbersome regulations, licensing and registration requirements will have to be simplified and relaxed. Duties and taxes, which are currently very high compared to regional countries, need to be cut as well, he adds.

How can we compete, Ghouse asks, when we have to pay 17 per cent excise duty and six per cent income tax on chartering of aircraft? “We do not ask for extra benefits, except to make this industry competitive by providing it a level playing field against regional competitors,” he pleads.

He suggests that the government should take the UAE’s policy for private aviation as a benchmark, and hopes that in the next 10 years, growth in the industry will create jobs for highly skilled manpower, like pilots, engineers, ground and aircrews, and highly qualified service providers.

The tax-oriented policy should be replaced by ‘let businesses grow and then get taxes,’ he adds. Citing an example, the CEO of Princely Jets says if this industry grows, each aircraft taken on lease for chartering could bring in revenue of up to $5 million per annum.

In case there are 100 aircraft, they can earn up to $500 million every year.

Undoubtedly, he says, India, with around 100 aircraft, is far ahead of us in private aviation and chartering, but it is mostly engaged in domestic business. Pakistan, having geographical proximity to the Middle East and Central Asia, could easily expand its aviation services across its borders.

Dubai is the market leader in private aviation and chartering in the region, and is doing a lot business from this high profile and sensitive service-oriented industry.

Ghouse Akbar recalls that there was a time when Karachi was an aviation hub, but now the same has shifted to the UAE. This happened due to wrong policies and a lack of vision, otherwise Pakistan would have been a market leader in this industry.

Responding to a question, he says his company provided services to overseas dignitaries and high profile personalities from other countries, which showed their confidence in the company and its high standard of services.

However, his company gets more business during the election season, when political parties charter aircraft for quick movement to address their public meetings and to keep up with their campaigning schedules.

Princely Jets’ CEO disclosed that a 30-storey high rise building is coming up near Karachi’s Teen-Talwar, which will have a helipad at the rooftop. “Our company is entering into an arrangement with the owners of this building to provide air-service through helicopter from the Jinnah International Terminal to this point.”