The government is exploring ways to assist regional airlines in raising loans at cheaper interest rates to import aircraft as a part of the regional connectivity scheme.
The civil aviation ministry held a meeting with non-scheduled airlines in which concerns related to the regional connectivity scheme were raised by the operators.
“We feel the non-scheduled operators are the most prospective players who will come immediately to become a part of our scheme. Their response in the meeting was encouraging but they had certain concerns which we aim to address,” said a senior civil aviation ministry official.
The official said that the present procedure of leasing aircraft becomes tedious for airlines and ministry is looking forward to resolving this. Under the current norms, an aircraft cannot be mortgaged for raising loans to lease another aircraft. The official said it may propose to the Union finance ministry to allow financial institutions to give loans against aircraft mortgage.
“We raised the issue related to raising capital and lowering interest rate for acquiring aircraft. There is a need for finance to be made available to us at a lower interest rate and financial institutions should come forward,” said Bhupesh Joshi, governing board member of Business Aircraft Operators Association. Adam Vinatieri Jersey