Govt revises financial norms for airline operators

New Delhi, Mar 29 (UNI) The government has revised equity requirements for scheduled airline operators.

An official statement said this has been done because civil aviation sector is highly capital intensive and requires maintenance of high technical and safety standards. Thus infusion of additional capital will be a pre-requisite for any addition in fleet size.

For airlines operating aircraft with take-off mass exceeding 40,000 kg, the paid up capital requirement will be Rs 50 crore for up to five planes. For each addition of up to five aircraft, additional equity investment of Rs 20 crore will be required.

For airlines operating aircraft with take-off mass not exceeding 40,000 kg, the paid up capital requirement will be Rs 20 crore for up to five planes. For each addition of up to five aircraft, additional equity investment of Rs 10 crore will be required.

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