|Big news in aviation--Acquisition of Aircraft by Airlines Liberalized: Minister Ajit Singh Abolishes Aircraft Acquisition Committee|
The Minister has also abolished the Aircraft Acquisition Committee (AAC) as it is no more relevant. The matter relating to initial No Objection Certificate and in-principle approval for acquisition of aircraft by scheduled operators will now be processed by concerned Division of the Ministry.
At present, MoCA’sapproval is required for issuing initial No Objection Certificate in cases of scheduled airlines, non-scheduled airlines, flying institutes and private category. Besides this, MoCA’s approval is also required for acquisition of aircraft by scheduled and non-scheduled operators, flying training institutes and for private use and also for replacement of aircraft. After implementation of this decision, no approval from MoCA will be required by anybody for actual import / replacement of aircraft and all such cases will be dealt by the DGCA for completion of necessary formalities.
This decision is another major step towards liberalization in the civil aviation sector after allowing 49% FDI in airlines. This will remove duplication and also reduce delays in seeking approval and will do away with the cumbersome procedure which airlines have to follow before acquisition of aircraft. The decision will help airlines to plan better for future induction of aircraft and also maintain timeliness of acquisition.
Total Approvals viz-a-vizapplication by scheduled airlines/private airlines are as under:
Proposals (no of aircraft)
Approvals (no. of aircraft)
Lepl Projects Limited
Non Scheduled airline: 37 36
(One proposal for acquisition of aircraft has been differed at the AAC level, to meet with the existing procedure)
Flying training Institute: 08 08
Private Use: 05 05