New norms for private carriers soon?

The government is toying with the idea of introducing a minimum paid-up capital norm of Rs 200 crore for domestic airlines to be eligible to fly international routes. However, sources said the minimum fleet requirement of 20 aircraft is likely to stay.
Once the new capital norm is implemented, the Centre would do away with the current five-year domestic flying experience criteria for flying overseas, though the industry has only demanded this be reduced to three years. The three-year eligibility demand is likely to be acceded to in April as a precursor to the Rs 200-crore capital norm.
Under the current equity structure of major airlines, only Indian Airlines and Kingfisher would be eligible to fly under the Rs 200-crore norm. Spicejet (Rs 179.3 crore), Jet Airways (Rs 86.3 crore) and Air Deccan (Rs 100.14 crore) would have to increase their paid-up capital to Rs 200 crore. Equity capital details of others like IndiGo and Go Air were unavailable since they are not yet listed.
23/03/07 Atreyee Dev Roy & Bipin Chandran/Financial Express

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Categories: General Aviation Mar 2007