Saturday, July 01, 2006

Govt places curbs on aircraft leasing

New Delhi: In a move likely to constrain the flight of several Indian carriers, the government has directed them not to take aircraft on dry lease from international airlines or leasing companies that are part of an airline.
However, no restriction has been placed on wet-leasing, in which an aircraft is leased out with a crew to operate it, and which is only for a short period and specific routes.
The move is a step towards ensuring that no foreign airline has any direct or indirect holding in an Indian carrier, as intended by the civil aviation policy. In addition, no Indian carrier will be allowed to forge a management contract with a foreign airline.
Several Indian carriers operate aircraft that have been taken on dry lease from international carriers or leasing companies. Air Sahara’s entire fleet is on lease.Even state-run Air-India and Indian have a substantial part of their fleet on lease.
01/07/06 Bipin Chandran/Business Standard
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