Advertisement

HindustanTimes Sat,22 Nov 2014

Govt to relax rules for carriers to fly overseas

Agencies  New Delhi, September 21, 2012
First Published: 22:57 IST(21/9/2012) | Last Updated: 23:29 IST(21/9/2012)

The government will relax the minimum requirements for Indian carriers to fly overseas, civil aviation minister Ajit Singh said on Friday.

Advertisement

The new rules will relax current norms of a minimum requirement of 20 aircraft and five years of experience for airlines, minister Ajit Singh said.

A day after notifying a policy measure to allow foreign airlines pick up 49% stake in Indian carriers, the government on Friday said the aviation indus- try was in an upbeat mood as it was expecting a positive response to the move.

“The aviation sector is going through difficult times and facing financial stress due to the economic slowdown,” Singh said on the sidelines of an ASSOCHAM conference on Indian civil aviation sector here. “But the mood is upbeat now.” http://www.hindustantimes.com/Images/popup/2012/9/22_09_12-buss27b.jpg

A week after the Cabinet Committee on Economic Affairs took the decision, government on Thursday notified it to permit foreign airlines “to invest in capital of Indian companies operating scheduled and non-scheduled air transport services up to the limit of 49% of their paid up capital.”

This would pave the way for much-needed equity infusion in Indian carriers which are in dire need of funds, he said, adding that banks were currently unwilling to give money to the airline industry due to the prevailing financial distress.

Terming the problems faced by the aviation sector as temporary, Singh said the sector was vital for economic growth and was bound to grow with the growth of the middle class as air travel for it was now a necessity.
 
Reuters & PTI


Advertisement
more from Aviation

Airbus A350 'performing extremely well' in flight: pilot

The first test flight of Airbus's next-generation A350 plane was going smoothly and the aircraft was "performing extremely well", its pilot said today, two hours after take-off.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved