DGCA revises licensing norms
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The Directorate General of Civil Aviation (DGCA) has revised the airline licensing norms in the country.
The new norm will restrict foreign carriers having management control in domestic carriers. The revised rules regarding minimum requirement for grant of operating permit was issued yesterday.
According to the circular released by the DGCA, the amended rules also allow airlines to carry out maintenance and repairs and training of pilots and engineers at facilities belonging to other airlines. This change will benefit both Tata Singapore Airlines and AirAsia, which could use their bases in Singapore and Malaysia for training and engineering functions.
Earlier rules stipulated that the Chairman and two-third of an airline’s board members are Indian citizens. The revised rules state that domestic airlines shall not enter into an agreement with a foreign airline or a foreign investor, which may give latter the ‘right to control the management’ of the domestic airline.
Other modifications in the rule include the need for prior security clearance from by the Ministry of Home Affairs for the Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer of an airline if the post is held by a foreign national. Currently, AirAsia India is waiting for its operating license from the DGCA, while the Tata Singapore Airlines is still to receive a no-objection certificate from the Ministry of Civil Aviation.
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