Govt to increase paid up equity capital for domestic airlines by 70%

The government is planning to increase the paid-up equity capital requirement for domestic airlines by about 70% to qualify them as scheduled operators, which would ensure only serious players enter the market, reports Economic Times.
Under the new guidelines, an airline operating with aircraft take-off mass exceeding 40,000 kilograms will need paid-up equity of Rs 500 million as compared to the present requirement of Rs 30 million. In case of a carrier with take-off mass less than 40,000 kgs, paid-up capital requirement will increase from the present Rs 10 million to Rs 20 million. This restriction of increased equity will be in addition to the present requirement of domestic carriers possessing minimum five aircraft.
08/09/06 Myiris.com

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