AviationMin abolishes aircraft purchase panel

The civil aviation ministry announced on Thursday that it has abolished its Aircraft Acquisition Committee (AAC). For domestic carriers, the move would mean the airlines would not have to seek prior clearance from any government panel for importing aircraft into the country and can now directly approach the Directorate General of Civil Aviation (DGCA) for airworthiness approvals.

The decision to abolish the committee has come at a time when the airlines had alleged that the AAC is acting as a deterrent by delaying the process of import of aircraft.

A senior civil aviation ministry explained that civil aviation minister Ajit Singh took the decision after an internal review for the period since December 2011 found that the committee has not withheld even a single proposal.

"This proved that the country has enough infrastructure for the planes coming in and the committee was only proving to be a bureaucratic hurdle in the whole process of import," said the official.

The proposal for a no-objection certificate to start a new airline will however require the ministry's approval. Also, existing commercial airlines would need to get an in-principle approval for commencing negotiations with aircraft manufacturers prior to ordering aircraft.

"The airline will have to come for in-principle approval, before going for negotiations for aircraft purchase, as it is one of the requirements under the Aircraft Rules and Reserve Bank of India guidelines," said the official.

The airlines have welcomed the decision as "a progressive step".

"India is a highly under-penetrated aircraft market. This is a significant step towards unleashing the true potential of aviation in India whereby the demand-supply anomaly may be addressed over time and millions more may be able to fly one day at lower fares," IndiGo, India's largest carrier in terms of passenger numbers, said in a statement.

... contd.

ALSO READ

Govt aims to bring down CAD to 2.5% by 12th Plan-end, says Montek

Raghuram Rajan not in favour of sovereign bond to finance CAD

Companies expand background check on jobseekers

BlackBerry Messenger-WhatsApp manipulation: Sebi eyes crackdown