Captain Nirmala traces the flight route for cheaper plane tickets
NEW DELHI: Indian airlines will soon be able to offer low rates sustainably without breaking. The government wants to develop India as a center to finance the purchase and rental of aircraft and also the subsequent maintenance, repair and overhaul (MRO) of this fleet. This will reduce the cost of financing for the airlines and reduce the expenses incurred in the service of aircraft since, at present, most of the aircraft are sent to MRO abroad.
The government will also restart the process of strategic disinvestment of Air India, finance minister. Nirmala Sitharaman he said in his inaugural Budget speech on Friday. While Air india (AI) has a lakh allocation of Rs 1, the government is considering a bond issue of Rs 7,000 crore to partially pay its Rs 29,000 crore debt that has been transferred to SPV AI Asset Holdings Ltd.
Perhaps to ensure that the second attempt to liquidate artificial intelligence is not a harvest either, Sitharaman said that relaxed rules of foreign direct investment (FDI) in the aviation sector will be considered. At this time, foreign airlines can not own more than 49% in a joint venture airline in India to ensure that effective control remains with the Indian partner.
As the third largest national aviation market in the world, it is an opportune time for India to enter into financing and leasing activities for aircraft off the Indian coasts. This is essential for the development of a self-sufficient aviation industry, creating aspirational jobs in aviation finance, in addition to taking advantage of the business opportunities available in the special economic zones of India, namely the International Financial Services Center, said the finance minister.
Airbus India and South Asia President Anand E Stanley said: The relaxation of FDI in aviation will boost the government divestment program. We hope to have government support for tax reform to incentivize airlines and to boost the MRO industry so that the service cost of aircraft in India is not only competitive but also clearly attractive.
The general director and general manager of AirAsia India, Sunil Bhaskaran, said that the government's proposal to introduce financing and leasing of aircraft will reduce costs for airlines. Indian airlines are expected to induce more than 600 aircraft in their fleet in about a decade. The president of the Indian MRO Association, Bharat Malkani, said the industry is confident of turning India from a MRO importer into a net exporter and creates more than 100,000 direct jobs and incomes in excess of 35 billion rupees. the next five years.