Keeping in line with the government’s ease of doing business policy, the civil aviation ministry is considering a proposal to do away with the multi-level approval process for importing aircraft. The move is set to help airlines, especially start-ups, in inducting new airplanes to their fleet. The ministry is learnt to have taken up the matter with the department of commerce and industries and the Reserve Bank of India (RBI). "The government is considering several proposals to facilitate sustainable growth in the sector. Many of them would be part of the aviation policy, which would be finalised soon," an official said.
India is one of the fastest growing aviation markets in the world and ranks seventh globally. It is expected to figure among the top three aviation markets in the next 20 years, making it a favourite for aircraft manufacturers Airbus and Boeing. Toulouse-based Airbus in its Global Market Forecast, 2013, had said India would need 1,291 new passenger and freight aircraft by 2032. Scheduled Indian carriers currently have a combined fleet size of about 400 aircraft.
"We welcome the move to make aircraft import easier. It will speed up aircraft induction. The current process is complex and expensive," said Kapil Kaul, India head of Centre for Asia Pacific Aviation (CAPA).
The proposed move may further bring down the present 3-month time it takes to import an aircraft. “Acquisition of aircraft is a techno-commercial decision best left to airline promoters, management, lessors and lenders," said Amber Dubey, partner and India head of aerospace and defence at KPMG.
Some airlines are, however, comfortable with the present process. "It's not a big thing. We did not face any problem while importing aircraft. The process generally takes two-three months," said V Umesh, MD of Turbo Megha Airways.
