Carriers may have a younger fleet

New Delhi: In a move that may push up the cost of fleet acquisition, the government is likely to reduce the age limit of aircraft that can be bought by an Indian carrier from 15 to seven years.
According to aviation industry estimates, newer aircraft are likely to cost about 25 to 30 per cent more than older aircraft. This will make it more expensive for Indian carriers to lease as well as buy aircraft.
Globally, cost of leasing aircraft has already risen with the Indian carriers placing huge lease orders. It is estimated that the leasing cost has gone up by about 40 per cent in the last 12 months to about $15 million a year, after it hit an all-time low following the global aviation slump in 2001.
Civil Aviation Minister Praful Patel said the proposed civil aviation policy was likely to spell out the details of this move by the government.
06/05/06 Bipin Chandran/Business Standard

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