Budget 2021

Validity period of ‘in-principle approval’ for aircraft imports extended

Our Bureau New Delhi | Updated on July 09, 2014

Easing business The longer deliveryschedule of imported aircraft has beenposing problems for airlines as theyhave to approach the Governmentevery five years for approval.

Reason: Longer delivery schedule by aircraft manufacturers

In order to help scheduled airlines, the Government has extended the validity of ‘in-principle approval’ for import of aircraft to 10 years from five years earlier.

The Economic Survey tabled in Parliament on Wednesday says this has been done on account of longer delivery schedule of aircraft by manufacturers.

An airline seeks in-principle approval from the Government before it signs up for buying an aircraft from a manufacturer and placing an order. Before the delivery date is finalised, the operator again approaches the Government, seeking final permission for import of aircraft.

Jet Airways, Air India, IndiGo, SpiceJet, and GoAir are among the scheduled airlines in the country.

With both aircraft manufacturers, Boeing and Airbus, seeing heavy demand for their single-aisle aircraft – the Boeing 737 family and the Airbus 320 family – the airlines get their aircraft only several years after a deal is signed. A 10-year window for an in-principle approval is likely to make it easier for airlines to carry out their business without going back to the Government every five years, seeking an extension of the approval in case the manufacturer is unable to deliver the aircraft.

Passenger traffic up

During the year under survey, the airlines carried more domestic and international passengers than last year.

During April-March 2013-14, domestic airlines registered a growth of 5.2 per cent over last year, having flown 12.24 crore passengers, up from 11.63 crore flown during the previous year.

During 2013-14, the international passengers traffic handled by Indian airports was 4.66 crore up from 4.30 crore, an increase of 8.34 per cent, the Survey shows.

Published on July 09, 2014

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