India’s aviation regulator, the Directorate General of Civil Aviation, has proposed a new regulation which will enable operators to import foreign registered aircrafts and operate them on foreign registration with Indian crew.
“This will also make the aircraft leasing environment user friendly,” the civil aviation ministry said in a statement.
Currently, any aircraft that is being brought to India has to be first registered with the DGCA. The rule has been seen as a hurdle in taking planes on lease by airlines at a time when India is pushing for increased regional air connectivity.
Exemption from this rule will make it easier for the lessor to take back the aircraft in case of a dispute with the airline operating the aircraft. The move reduces the risk of the lessors’ planes getting stuck in India and hence may encourage them to formulate easier leasing contracts with lower rentals.
Last month, the civil aviation ministry had called a meeting of aircraft lessors as part of efforts to ensure availability of aircraft to implement the regional connectivity scheme. Mohamed Sanu Authentic JerseyShare This