The Lok Sabha election campaign nears its conclusion with the last round of voting going to be held on June 1. One amazing fact to get acquainted with is that the Helicopter operators have earned the highest-ever revenues of roughly Rs 350-400 crore during the current election season. Election season is often chaotic for helicopter operators, and it was exacerbated by a significant increase in demand, driving chartering rates up to 50%. Helicopters are hired on an hourly basis.
During the elections, the price of a single-engine helicopter like the BEL 407, which seats 6-7 people, jumped to Rs 1.3-1.5 million per hour. Twin-engine helicopters with a capacity of 7-8, such as the Augusta AW109 and H145 Airbus helicopters, have experienced a significant increase in price, with hourly rentals reaching Rs 2.3-3 lakh.
There are just a few twin-engine helicopters, but they are the best option for VVIPs due to stability, safety, and comfort. The third configuration comprises the 15-seater AgustaWestland, of which just three are available, with a rental starting at Rs 4 lakh.
According to Captain Uday Geli, President (Western area) of the Rotary Wing Society of India (RWSI), there are roughly 165-170 Non-Scheduled Operators (NSOPs), with 30-35 being twin engines. NSOPs are entities that do not follow a set timetable and fly whenever there is a need.
"Due to the high demand during the elections, helicopter operators charge 40-50% more than usual hiring rates. In the 2019 Lok Sabha elections, they charged 20-30% extra. This year, demand has grown significantly and is coming from state parties, while the quantity of helicopters has not increased," Geli told a credible source.
Geli estimates that helicopter operators' overall business during this election might be between Rs 350 and 400 crore. The RWSI is a non-profit professional association dedicated to the development of India's civil and military helicopter sector. It has 189 corporate members (of whom 90% are helicopter operators).
A private helicopter operator stated that his machines, particularly twin engines, were booked 4-6 months in advance, and that they had to decline several last-minute requests from individual MPs looking to lease helicopters. "We received a few requests from individual MPs who wanted to hire single-engine helicopters before polling in their constituencies," said the Mumbai-based company.
How can helicopter operators make so much money?
During elections, these operators negotiate recruiting contracts for extended periods of time, such as 45-60 days, particularly with parties with a multi-state presence, such as the BJP and Congress. The two major parties secure recruiting well in advance.
"Where they (operators) make money is when political parties sign lengthier contracts ranging from 45 to 60 days with a minimum guaranteed hours of 2.5 to 3 hours each day. If someone hires for 60 days, the operator receives 180 hours of flying; whether or not they fly, the party is required to pay.Geli notes that the operators need a 30-day advance payment, and when the date approaches, they request the remainder payment.
The top three helicopter operators—Pawan Hans, Heligo Charters, and Global Vectra Helicorp Limited (GVHL) - have 13-15 machines each for election hire. There are smaller firms that lend out 2-4 machines. Some single-engine machine contracts were withdrawn from the campaign season by the first week of May due to the start of the Char Dham Yatra in Uttarakhand.
Helicopter Economics
According to calculations, a twin-engine 8-seater helicopter costs Rs 3 lakh every hour, and 180 hours would cost Rs 4-5 crore per helicopter. If an operator owns 4-5 helicopters, he will make Rs 20-25 crores in only two months.
"This is about double what they would receive in ordinary hiring. These helicopters work 40-45 hours each month at a cost 40-50% less than what is paid during election seasons," Geli says.
The industry has noted a new trend in which, in addition to the two big parties, the BJP and the Congress, state-level political parties are asking for additional helicopters. According to reports, West Bengal hired five helicopters, a combination of twin and single-engine models, for campaigning.
The Samajwadi Party was looking for additional machines during the elections. According to an industry insider, political parties with a single state presence employ only one helicopter throughout the election season.
According to the audited accounts for 2019-20 submitted to the Election Commission of India (ECI), the BJP spent more than Rs 250 crore on aircraft/helicopters, while the Congress spent more than Rs 126 crore on election travel (not including helicopters).
