The increasing number of Indian multinationals and the rise of a new class of multi-millionaires are set to double the number of private aircraft in India by 2010, in spite of recent signs of a slowdown hitting the local aviation industry.

Demand for corporate aircraft has risen sharply since 2005, fuelled by strong economic growth, record high property prices and India 's 2007 bull market.

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The number of private business jets, turboprops and helicopters this year overtook that of aircraft owned by commercial airlines, according to industry data. Although there is no exact figure for private aircraft, the current number is between 450 and 600, according to industry data.

The sector is expected to expand still further in the next decade, fuelled by India 's global business expansion, says Kapil Kaul, chief executive of the Centre for Asia Pacific Aviation.

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"If the economy grows, the number of private jets will go up too," says Mr Kaul. "This kind of relationship has been witnessed in mature markets."

The sector is expected to grow by 40 per cent in the next three years, with at least 1,500 corporate aircraft estimated to be flying by 2020, according to Capa.

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Although corporate aviation has started to feel the pressure of rising fuel prices and deteriorating credit conditions in the past few months, most industry experts and aviation executives are confident that the future remains positive.

"A person who can afford a BMW will not stop using it if fuel prices go up ... hence companies that have the resources to buy jets are buying them irrespective of rising fuel prices," says Karan Singh, president of the Business Aviation Association of India.

But Ankur Bhatai, executive director of Bird, an aviation management group, is more bearish. "Many real estate developers have seen their strong cash flows evaporate and are struggling to find the finances to buy private jets," he says.

Mr Singh acknowledges that there had been a drop in demand for private charter flights, which are mainly used by new millionaires who made their money during the stock and property boom, but he says the overall outlook remains strong.

"Corporate houses that are expanding operations and locating themselves in different geographies are boarding corporate jets to improve efficiency and stay ahead of the competition," he says. "This kind of expansion will keep the sector growing."

Testimony of the sector's strong growth potential in India is that an increasing number of local companies, which have not been traditionally involved in the aviation industry, are starting to invest in private aircraft ventures.

This year Hero Motors, India 's biggest motorcycle manufacturer, announced plans to launch an aviation business. Initially, Hero Aviation will produce only aircraft aimed at the new Light Sport Aviation class, which has generated huge orders from leisure flyers in the US and promises to do the same when Europe finalises its rules for its version of the class. However, Hero plans to enter the corporate jet business in the future, the company says.

Tata Group, the Indian conglomerate, which already had a small private jet operation, joined forces with BJets in February to enter India 's nascent jet fractional ownership scheme sector.

Club One Air, the first company in India to offer fractional ownership of jets, adopted this model to attract young IT professionals and junior executives.

Companies such as Club One Air and BJets are likely to see further growth next year, with the entry of cheaper and lighter jets such as the Eclipse 500. The Indian authorities certified the US-made four-passenger Very Light Jet in April this year, even before it has won European approval.

Currently, an hour of flying time costs about $8,000 on average in India, compared with $5,000 in the US and $6,000 in the Gulf, according to industry estimates.

"Although our main clients are big companies, such as Reliance [Get Quote] and DFL, and political parties, with the arrival of the Eclipse 500, we plan to target and cater for second-tier management and IT professionals," says Ashok Pratap Rai, chief executive of Club One Air. He has ordered 11 Eclipse 500s and the first one is expected to arrive by the end of the year.