Mumbai: The Directorate General of Civil Aviation has revised airline licensing norms, restricting foreign carriers from having management control in domestic airlines. The revised rules regarding minimum requirement for grant of operating permit were issued on Wednesday.
The amended rules also allow airlines to carry out maintenance and repairs and training of pilots and engineers at facilities belonging to other airlines. This change will benefit both Tata Singapore Airlines and AirAsia, which could use their bases in Singapore and Malaysia for training and engineering functions.
Earlier rules stipulated that the chairman and two-third of an airline’s board members are Indian citizens and that effective control and substantial ownership is vested with Indians. The revised rules state domestic airlines shall not enter into an agreement with a foreign airline or a foreign investor, which may give the latter the "right to control the management'' of the domestic airline.
21/02/14 Business Standard
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The amended rules also allow airlines to carry out maintenance and repairs and training of pilots and engineers at facilities belonging to other airlines. This change will benefit both Tata Singapore Airlines and AirAsia, which could use their bases in Singapore and Malaysia for training and engineering functions.
Earlier rules stipulated that the chairman and two-third of an airline’s board members are Indian citizens and that effective control and substantial ownership is vested with Indians. The revised rules state domestic airlines shall not enter into an agreement with a foreign airline or a foreign investor, which may give the latter the "right to control the management'' of the domestic airline.
21/02/14 Business Standard
