In a landmark reform, India will permit fractional aircraft ownership and aircraft management, allowing joint and third-party ownership from Jan. 1, 2027. The move forms part of the new 2026 India Aircraft Rules (Bharatiya Vayuyan Niyam, or BVN), which replace the 1937 Aircraft Rules.
A draft Civil Aviation Requirement (CAR) will be posted on the Directorate General of Civil Aviation (DGCA) website for industry comment in a month or so, followed by the final amended CAR, detailing the standard operating procedures and regulations, within three months, AIN has learned.
“The introduction is coming to democratize general aviation in India,” RK Bali, managing director of the Business Aircraft Operators Association (BAOA), told AIN. Just as in the U.S. and Europe, maturity will be built slowly in a structural manner, he added.
Under the new framework, which draws on the FAA’s Part 91 Subpart K model, the management provider will serve as the interface between the fractional owners and the regulator, added Bali.
“My understanding is fractional ownership in India will operate through an authorized aircraft management service provider, which could also be an existing nonscheduled operator permit [NSOP] holder. As envisioned under Rule 188 of the BVN 2026, aircraft with multiple legal owners can be operated through such a management provider or through an appropriate dry-lease arrangement,” he said.
“This reform reflects a far more mature market than two decades ago. With more aircraft entering service and demand rising, the customer base has expanded,” said Rajan Mehra, the former CEO of Club One Air. According to Knight Frank’s “The Wealth Report 2026,” the number of ultra-high-net-worth individuals in India—those with a net worth of at least $30 million—rose 63% between 2021 and 2026 to nearly 20,000. The report projects that figure will climb another 27% by 2031.
“The move will bring in consolidation of the fragmented NSOP holders, improving aircraft utilization,” said Sanjay Julka, managing director, sales and development, Cove Capital. India had 122 NSOP holders operating 433 aircraft in 2025, according to DGCA data, and most operate fleets of three aircraft or fewer.
Still, fractional ownership faces hurdles including infrastructure constraints, tax complexities, and the need to build scale. Jayant Nadkarni, founder of Flightshares and former BAOA president, cautioned that some operators could enter the market unprepared, suffer losses, and damage the reputation of the industry. Flightshares plans industry awareness workshops to promote steady and sustainable growth in the sector.
Some early entrants could be JetSetGo, Flightshares, Star Air, SafeFly, Aravti Aviation, Air Charter Services, and VSR Ventures.
While the global industry has set its eyes on India’s growth, “it will take off once someone bells the cat,” said an operator. He hoped a large Indian industrialist would, in the future, be a pioneer to set the industry off in the country.
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