(a) whether the Government has made criteria more stringent
for private airlines to start their operation;
(b) if so, the details thereof and the reasons therefor;
(c) the affect of these measures likely to be caused on
aviation industry; and
(d) the details of the action taken by the Government in
this regard?
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF CIVIL AVIATION (SHRI PRAFUL PATEL)
(a):- Yes, Sir.
(b):- The paid up equity capital for scheduled operators
upto first five aircraft having take off mass exceeding
40,000 Kgs. and having take off mass not exceeding 40000
kgs. will be Rs. 50 Crore & Rs. 20 Crore respectively. For
each addition upto five aircraft additional equity
requirement would be Rs. 20 Crores and Rs. 10 Crores
respectively.
All existing Private Operators will be required to comply
with the above requirement and whenever necessary will have
to raise their authorised and paid up capital to the
prescribed minimum level within a period of one year.
However, there will be no need for further enhancement of
equity if the paid up equity/reserves of Rs. 100 Crores is
available with the airlines.
The basic purpose of enhancing the entry capital norms in
respect of scheduled airline operators was that the
operators have sound financials and adequate financial
commitment to provide sustained passenger airline services
over a period of time.
(c) and (d):- Only serious companies having sound financial
background will be able to provide the Scheduled Air
Transport Services in the country on a sustainable basis
leading to stability in the sector.