Sunday, October 09, 2016

Aircraft lessors to get a call for more planes by Civil Aviation Ministry

New Delhi: The civil aviation ministry has called a meeting of aircraft lessors on Thursday as part of efforts to ensure availability of aircraft for the new carriers that are set to start operations to implement the government’s regional connectivity scheme.

“The discussions are likely to be on understanding the apprehensions of lessors in leasing aircraft to newer carriers and rules and regulations in the Indian market,” said an aviation ministry official, who did not want to be identified.

The meeting, convened by aviation secretary RN Choubey and being coordinated by an aircraft maker with presence in India, marks the first such interaction in the country between the aviation ministry and aircraft lessors.

The official said that following this meeting, the government may take a call on allowing foreign registered smaller aircraft to fly in India. The ministry sees availability of aircraft as the biggest impediment in the implementation of the regional connectivity scheme, he said.

Analysts, however, said that leasing companies have no interest in small planes and regional connectivity can succeed only if the government is involved in arranging or acquiring aircraft.
10/10/16 Mihir Mishra/Economic Times