Regional airlines airborne

New Delhi: The government today came out with new norms for regional airlines, which could start operations with just three aircraft and a minimum of Rs 12 crore as paid-up capital.
These entities will operate within a region and can fly to other regions but not to the metro airports of other regions. The civil aviation ministry considers the airports in Delhi, Mumbai, Chennai, Bangalore, Hyderabad and Calcutta as metro destinations.
A separate category of permit will be issued for the airlines. Civil aviation minister Praful Patel said, “The airline companies can initially start operations with one aircraft but within one year, they must have a fleet of three. In two years from the start of operation, they need to have five aircraft.”
Patel said regional airlines would meet the growing demand for air travel in the smaller cities. He said existing operators were unable to cater to this segment for various reasons.
According to an aviation ministry notification, the requirement of paid-up capital is Rs 30 crore for three aircraft with each having a take-off mass of more than 40,000 kg.
For every additional aircraft, the paid-up capital should go up by Rs 10 crore, up to a maximum of Rs 50 crore.
For an aircraft with a take-off mass of less than 40,000 kg, the paid-up capital for plying three aircraft is Rs 12 crore.For operating two more aircraft, the paid-up capital will be Rs 20 crore.
09/08/07 The Telegraph

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Categories: General Aviation Aug 2007, New Aug 2007