Norms for private airlines revised

New Delhi: In a bid to safeguard the aviation sector from the uncertain business practices of fly-by-night operators, the government has revised the guidelines for scheduled private operators by enhancing the equity requirements for these airline companies.

Under the revised norms, airlines operating five small aircraft like ATRs and turbo-props, with a take-off mass of up to 40,000 kilograms, should have an equity capital of Rs200 million (Rs20crore). Those operating five planes of over 40,000 kilograms, like Boeing or Airbus, should have an equity worth of at least Rs500 million (Rs50crore).

The norms for starting airline operations have also been revised.

A start up airline, even as it meets the fresh equity norms, can now start operations with one aircraft, but would have to augment its fleet size to five aircraft within a year. This is a change from the earlier requirement of a minimum of three aircraft, according to official sources.

Sources also said that revised norms would come into effect as soon as the Directorate General of Civil Aviation (DGCA) notified them. The new notification would amend the relevant Civil Aviation Requirement provisions.

Sources added that all existing private airlines would have to comply with the revised norms and, wherever necessary, raise their authorised and paid-up capital to the prescribed levels within a year.