Regional carriers will need Rs 30 cr equity

New Delhi: Regional airlines will need a minimum paid-up capital of Rs 30 crore and a fleet size of at least five aircraft to get the government nod to fly.
The tough norms are expected to be part of the civil aviation ministry’s policy for regional airlines. Experts feel the stipulations could be tough on regional carriers, which are not expected to have deep pockets.
According to the proposed policy, the country will be divided into five regions – north, east, west, south and central. Licences would be issued for each region, a government official told FE. The government would provide some fiscal incentives to regional carriers in the form of lower airport charges and tax concessions on fuel among others, the official added. These could include extending the concessional sales tax rate of 4% on aviation turbine fuel to regional airlines. At present, carriers pay sales tax on fuel ranging between 4% and 39%.
The sources said a regional airline operating with an aircraft having fewer than 80 seats would also be fully exempt from navigation and airport charges.
09/07/07 Sunny Verma/Financial Express

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Categories: General Aviation Jul 2007, New Jul 2007