Monday, August 21, 2006

Airlines influx: Govt plans tougher norms

New Delhi: In a bid to ensure that the civil aviation industry which has grown by over 25% in the past year remains in the pink of health, the government is contemplating putting up higher barriers to prevent overcrowding of players in the market.
Though a final list of new barriers being planned is still prepared, sources said the move may include hiking the basic requirements like minimum equity capital and fleet size.
"We feel there's still scope for more airlines planning feeder services in small cities. The problem is in the trunk routes where there's limited space for new airlines. We certainly don't want a scenario where a large number of airlines take-off and expand fast, and then fold up equally faster,"the official adds.
Government has also decided to reduce by five years the average age of aircraft being imported into India for commercial airline operations.
21/08/06 Byas Anand/Times of India
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