Govt revises norms for private airlines

NEW DELHI: In a bid to purge the aviation sector of fly-by-night operators, the government today 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 kgs, should have an equity capital of Rs 20 crore. Those operating five planes of over 40,000 kgs, like Boeing or Airbus, should have an equity worth of at least Rs 50 crore.

The norms for starting airline operations have also been revised.

An airline, while meeting the fresh equity norms, can start operations with one aircraft, but would have to augment its fleet size to five within a year. Earlier, the minimum number of aircraft required to start operations was three, an official spokesperson said.

The changes would come into effect as soon as the fresh norms are notified by Directorate General of Civil Aviation, official sources said, adding the notification would amend the relevant Civil Aviation Requirement provisions to give effect to the changes.

All existing private airlines would have to comply with the revised requirements and, wherever necessary, raise their authorised and paid-up capital to the prescribed levels within one year, the spokesperson said.