1. Govt may make buying of planes easier, cheaper

Govt may make buying of planes easier, cheaper

To make procurement of aircraft cheaper and more cost-efficient, the civil aviation ministry is looking at allowing two or more carriers...

By: | New Delhi | Published: July 18, 2015 12:26 AM

To make procurement of aircraft cheaper and more cost-efficient, the civil aviation ministry is looking at allowing two or more carriers to partner and place bulk orders to aircraft makers, such as Boeing and Airbus. It is also looking at abolishing the age-old requirement of obtaining a no-objection certificate (NOC) for placing orders for aircraft.

“This will be a historic step for airline companies and will allow them to negotiate better with manufacturers,” said civil ministry officials. The government expects that the move will bring down the rates as the order size will be bigger.

Earlier in the week, civil aviation secretary RN Choubey had said the government would look at making acquisition of airlines cheaper. Clubbing of orders is one of the first steps in that direction. “We do not need permission from any other ministry to do away with this rule,” said officials.

Civil aviation ministry officials are in talks with International Air Transport Association (IATA) and other stakeholders, including carriers, on this matter. “It is a good idea and the ministry is trying to make things better for the industry,” said officials.

Another matter being discussed within the ministry is removing the requirement of NOC, which airlines have to apply for before placing any order. Ministry officials said Choubey has written to the Reserve Bank of India to do away with the existing process of importing planes.

“Unless we add value, there is no need for the ministry’s interference in importing planes,” said officials.

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