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India to increase subscribed equity capital needed for airlines
21 January 2007

The Indian government has tightened the norms for airline operations in the country by increasing the subscribed equity capital needed for starting a scheduled airline with five large aircraft from Rs. 30 crore to Rs. 50 crore. The decision to raise the bar in the fast expanding aviation sector is aimed at encouraging serious players only. The new norms will be applicable with retrospective effect for those having aircraft weighing 40,000 kg each. Existing airlines would, however, get a year to comply. The Government has stipulated that such airlines will have to pump an additional Rs. 20 crore into the subscribed equity capital for every five additional aircraft they induct. (The Hindu)