Thursday, October 05, 2006

India may opt for temporary moratorium on new airline licenses

Authorities in India have indicated about their plans of putting a temporary moratorium on new airline licenses.
India’s Civil Aviation Minister Praful Patel shared that there will be no rapid roll-out of licenses.
“There will be no blanket ban, but pending applications will go through very very high scrutiny,” he reportedly said. Insisting there were no major applications pending for aviation licenses, he added that any fresh applications would also go through scrutiny of business plans.
However, experts feel Indian aviation’s growth potential is far from being achieved and the increased regulation would threaten to prematurely curb its development.
Under these fresh regulations, the government intends to make it mandatory for all wannabe aviators to first tie-up finances, aircraft leasing deals and recruit pilots and engineers before seeking a scheduled airline license.
04/10/06 Satish Gupta l eTN Asia/ (press release)
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