Wednesday, August 10, 2016

Regional companies struggle to lease planes

New Delhi: Civil aviation minister Jayant Sinha is attempting to clear an unforeseen hurdle in plans to increase regional connectivity — small carriers are finding players not keen to lease out planes to small players.

Concerns of smaller carriers have been raised at a time when two regional carriers had to shut shop - one for a couple of days and other forever - due to troubles with lessors.

"The problem we see in implementation of regional connectivity scheme is companies do not want to lease aircraft to aviation startups. The scheme is highly unlikely to succeed, if new regional players do not get aircraft," said a senior ministry official, who did not want to be identified.
10/08/16 Mihir Mishra/Economic Times
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