New Delhi: The euphoria over the government’s decision to permit foreign carriers up to 49 per cent stake in domestic skies will be tempered, with the civil aviation ministry deciding not to give fresh licences to set up a greenfield airline for the time being.
Speaking to Business Standard Civil Aviation Minister Ajit Singh said, “We are not giving licences for greenfield airlines.
As of now, FDI (foreign direct investment) in aviation can come only through existing airlines.” Under the current policy, a start-up airline has to get a no-objection certificate from the ministry, tantamount to a licence.
After that, it has to get a scheduled operator’s permit. The DGCA (directorate general of civil aviation) also has to clear the airline’s security preparedness.
Singh said another call would be taken once the ministry, working on an “aircraft acquisition policy”, evaluated demand for planes in relation to the estimated passenger growth and orders placed by domestic carriers.
27/09/12 Disha Kanwar & Surajeet Das Gupta/Business Standard
To Read the News in full at Source, Click the Headline
Speaking to Business Standard Civil Aviation Minister Ajit Singh said, “We are not giving licences for greenfield airlines.
As of now, FDI (foreign direct investment) in aviation can come only through existing airlines.” Under the current policy, a start-up airline has to get a no-objection certificate from the ministry, tantamount to a licence.
After that, it has to get a scheduled operator’s permit. The DGCA (directorate general of civil aviation) also has to clear the airline’s security preparedness.
Singh said another call would be taken once the ministry, working on an “aircraft acquisition policy”, evaluated demand for planes in relation to the estimated passenger growth and orders placed by domestic carriers.
27/09/12 Disha Kanwar & Surajeet Das Gupta/Business Standard
