Airliners-India.com

Dipanjan Mallik · Member Joined: 25 Jan 2007 Posts: 15

The govt has deciede to tighten the norms to make them financially more stronger.Under the new rule scheduled airlines with 5 large aircrafts will be reqd to increase the subscribed equity capital base frm Rs30 crore to Rs50 crore.
This has been done to screen out operators who do not hve the capability to strat or stay in the avation sector.If anyone remebers(though i was 2 small at tat time) opened and closed vry frequently the govt wants to avoid this.
It wiol hve a retrospective effect on those airlines havin aircraft weighing more than 40000KG which includes A320 and 737's or larger.
But gud for existing airlines they get a yr to comply wid the new norms but the new one hve to pay up bfre gettin permission to strat.
The airlines hve to also pay extra Rs 20 crore for evry new aircraft they add.The subscribed eqity for ATR's hve been also increased frm Rs10 crore to Rs 20 crore.
In effect the move would mean tat Jet which has paid up Rs86 crore for its 60 crore will hve to pay now over Rs150 crore.The current norms of Rs 10 crore and Rs 30 crore hve been in place frm March 1994.
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C mah blog http://avationfreak.blogspot.com/

Nimish · Posted: Fri Feb 23, 2007 3:36 pm Post subject:

Welcome aboard Dipanjan!

I think this would be a good move, since it forces wanna-be airlines to think through their business plans a bit more seriously and realize that they need really deep pockets in this business.

Plus it puts the pressure on the existing players to further commit to the industry.