GoAir’s aircraft buy likely to run into regulatory hurdle

New Delhi: GoAir’s plan to place order with Airbus Industrie for 72 jets worth R32,400 crore ($7.2 billion) could run into a regulatory hurdle.
The problem is that the airline has still not received prior in-principle approval from the civil aviation ministry as required by the law. Sources in the ministry said that the airline’s application seeking to place the orders is still pending before it.
In fact, the civil aviation ministry has asked the sector’s regulator, the Directorate General of Civil Aviation (DGCA), to find out as to how the airline placed the order.
“We have written to the DGCA to understand the actual position on the issue. The ministry has so far not accorded its in-principle approval to GoAir for importing aircraft and their application is pending,” an official source told FE.
27/07/11 Nirbhay Kumar/Financial Express

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Categories: GoAir Jun 2011