In order to improve safety standards, the Directorate General of Civil Aviation (DGCA) has doubled the paid up capital that non-scheduled air transport operators would have to maintain to run chartered services. Earlier, the paid up capital that operators needed to maintain for a fleet of three aircraft (helicopters or planes) was Rs 1 crore. Now they would need to show the DGCA a minimum balance of Rs 2 crore to maintain a fleet of two aircraft.
Mumbai has one of the largest helicopter bases at the Juhu airport and a significant number of chartered services operate out of the city. According to a DGCA official, this move is to ensure that operators who are in the non-scheduled air transport business are serious about safety standards. DGCA wants to ensure that operations are financially viable and that operator does cut corners and compromise safety. Often people just import machines and start these services, we want them to be financially healthy. The DGCA has however exempted gliders, hot air balloons, airships and Microlights from this rule. A hot air balloon, for instance, would cost less than Rs 50 lakh and it would be non-viable for a chartered service to keep aside a minimum of Rs 2 crore for a machine of Rs 50 lakh.
Some operators however feel that even these norms are 'stringent' for helicopters and airplanes and that it may hit expansion plans in future. “Expansion plans of some operators may be hit. Operators may need to procure an additional aircraft to break even, but it would be difficult with the increased paid up capital they would have to show,” said R N Johri, MD of Aman Aviation and Aerospace Solutions. “It will also be tougher for individuals and small players to start their chartered services,” said Captain Vijay Madan, managing director of AAA Aviation, at the Juhu airport.
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