Govt to limit imported aircraft age to 12

New Delhi: The government has decided to ban import of aircraft that are over 12 years old. The move, aimed at ensuring newer fleets, will push up the cost of leasing and hiring aircraft by around 30 per cent, industry sources say. However, the rule will be applicable only on future deals.
Low-cost carriers, most of which take older aircraft on lease to cut costs, will be the hardest hit by the move, which will be a part of the new civil aviation policy.
The cost of taking new aircraft on lease is around 40 per cent more than the older aircraft. This cost has already gone up by 40 per cent in the last 12 months due to a boom in the global aviation market.
However, the existing Indian carriers are unlikely to face any major problem as most of them are going for new aircraft.
21/09/06 Bipin Chandran/Business Standard

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