NEW DELHI: Indian carriers are now free from bureaucratic red tape that surrounded import of aircraft for fleet augmentation. Aviation minister Ajit Singh on Thursday disbanded the aircraft acquisition committee (AAC) where airlines' requests for getting aircraft have historically remained stuck for indefinite periods. Both schedule and non-schedule airlines and flying institutes can now induct planes as per their business plans, without seeking any nod from the ministry.
"Airlines decide their fleet size on commercial grounds. No airline will import planes if it does not feel the need to do so and there is no point in coming to us for seeking the nod to do so. I have decided to cut the bureaucratic red tape surrounding aircraft acquisition that only used to cause delays. The directorate general of civil aviation checks planes for airworthiness, safety and there is no need for any other approvals from the ministry as far as fleet is concerned," Singh said.
Airlines had been up in arms over the delays caused in the AAC. Airlines decide fleet size based on dynamic ground realities and hurdles in getting planes often meant airlines missing good business opportunities. The Prime Minister's Office had last year objected to Singh being the final approving authority of AAC after airlines conveyed fears that such a structure would only add to delays. The AAC has traditionally been headed by an additional secretary but Vayalar Ravi as aviation minister two years back had decided to have the minister as the approving authority, a practice continued by Ajit Singh.
In recent months, AAC was accused of sitting on requests from a leading low-cost carrier to import planes and the approval came after the ministry drew flak for this. The PMO is learnt to have pushed for smoother aircraft imports for airlines, especially in the wake of FDI rule change, which allowed foreign airlines to invest in desi ones or launch startups with Indian companies as majority stakeholders. Aviation industry insiders say the change in rules may have come after a nudge from the PMO.
After Thursday's move, airlines will only need the initial no-objection certificate from DGCA and an in-principle approval to import planes. "The in-principle nod is needed for meeting RBI norms that mandate some sort of government clearance before allowing a commercial entity to make payments to a foreign company," Ajit Singh said.
The impending Jet-Etihad deal and the soon-to-be-launched Air Asia India will now see more planes coming to Indian skies without any trouble from the ministry. Between December 2011 and March 2013, nine airlines that operate in India sought permission to import 97 planes and all were granted permission.
http://timesofindia.indiatimes.com/business/india-business/Aircraft-purchase-freed-from-red-tape/articleshow/19116639.cms
"Airlines decide their fleet size on commercial grounds. No airline will import planes if it does not feel the need to do so and there is no point in coming to us for seeking the nod to do so. I have decided to cut the bureaucratic red tape surrounding aircraft acquisition that only used to cause delays. The directorate general of civil aviation checks planes for airworthiness, safety and there is no need for any other approvals from the ministry as far as fleet is concerned," Singh said.
Airlines had been up in arms over the delays caused in the AAC. Airlines decide fleet size based on dynamic ground realities and hurdles in getting planes often meant airlines missing good business opportunities. The Prime Minister's Office had last year objected to Singh being the final approving authority of AAC after airlines conveyed fears that such a structure would only add to delays. The AAC has traditionally been headed by an additional secretary but Vayalar Ravi as aviation minister two years back had decided to have the minister as the approving authority, a practice continued by Ajit Singh.
In recent months, AAC was accused of sitting on requests from a leading low-cost carrier to import planes and the approval came after the ministry drew flak for this. The PMO is learnt to have pushed for smoother aircraft imports for airlines, especially in the wake of FDI rule change, which allowed foreign airlines to invest in desi ones or launch startups with Indian companies as majority stakeholders. Aviation industry insiders say the change in rules may have come after a nudge from the PMO.
After Thursday's move, airlines will only need the initial no-objection certificate from DGCA and an in-principle approval to import planes. "The in-principle nod is needed for meeting RBI norms that mandate some sort of government clearance before allowing a commercial entity to make payments to a foreign company," Ajit Singh said.
The impending Jet-Etihad deal and the soon-to-be-launched Air Asia India will now see more planes coming to Indian skies without any trouble from the ministry. Between December 2011 and March 2013, nine airlines that operate in India sought permission to import 97 planes and all were granted permission.
http://timesofindia.indiatimes.com/business/india-business/Aircraft-purchase-freed-from-red-tape/articleshow/19116639.cms
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