Almost 70% of India’s air charter industry, including players like Invision Air, Zest Aviation and Freedom Services, may be forced to stop all ?commercial? flights within a year. This is because the Directorate General of Civil Aviation (DGCA) is planning to notify a new rule re-designating all non-scheduled operator permit (NSOP) holders with less than three aircraft as ‘private’ airlines.

Aircraft owned under the private category, like those by corporates houses like Reliance or Aditya Birla for transport of company executives or personal use, are not allowed to carry fare-paying passengers. Currently, 120 air charter operators are registered as NSOPs with the DGCA, but only 39 have three or more aircraft. That means 81 will be forced to either stop operations, or expand their fleet to at least three within a year.

?The NSOP holders shall have a fleet of minimum three aeroplanes or helicopters either by outright purchase or through lease. To facilitate the start of operations, operators will be permitted to operate with one aeroplane/helicopter and will be given one year’s time from the date of securing operator’s permit to have the fleet size of three,? DGCA notice for revision of Civil Aviation Requirements (Section 3 Series C Part III) dated October 13, 2014 said.

It added: ?Existing NSOPs shall be given one year’s time to either raise the fleet strength or to get themselves converted into private category.?

The aviation regulator has decided to change the rules in order to make it easier for itself to meet the US Federal Aviation Administration’s (FAA) directions. In January this year, FAA had downgraded India’s air safety rating to Category 2 on the basis of its International Aviation Safety Assessments (IASA) programme, because it felt that the DGCA lacked adequate safety oversight capabilities. By reducing the NSOP count by 70%, DGCA’s limited technical staff (airworthiness officers) would now be able to more effectively keep a check on the maintenance of the many aircraft types.

?As part of the process of resolution FAA IASA findings and sustainment initiatives, DGCA reviewed the NSOP categorisation as most NSOP holders fall under the general aviation category or perform limited charter operations mostly for company executives,? the DGCA notice said.

?This rule will have a huge impact on regional connectivity plans of the government. If the NSOPs close operations, there is no way they can support the larger scheduled airlines in meeting regional route commitments. There is no sense to expand by adding more aircraft for most air charter operators, because the demand just isn’t there and market is too small right now,? an industry executive said.

A spokesperson for Business Aircraft Operators Association added: ?We are discussing the implications of this proposal with all concerned stakeholders and will share our comments with the DGCA in the coming days.? BAOA represents India’s air charter companies.