In order to simplify the leasing process, the Ministry of Civil Aviation is working towards a procedure to allow foreign registered aircraft to fly in India.
The aviation ministry on Thursday held a meeting with aircraft lessors, where it said that this international practice may soon be brought here.
The aviation ministry was represented by Minister of State for Civil Aviation Jayant Sinha, secretary R N Choubey and acting Directorate General of Civil Aviation chief B S Bhullar, ET reported.
US allows foreign registered air to fly in the country.
At present, an Indian company has to first get the aircraft registered in India, after which the aircraft can be used by it for regular or charter flights. The government plans to remove this requirement as Indian domestic air traffic is growing at the fastest pace globally and it is also promoting regional connectivity in a big way, which will also require additional aircraft.
Exemption from this rule will make it easier for the lessor to take back the aircraft in case of a dispute with the airline operating the aircraft. Since there will be less risk of their planes getting stuck in India, the leasing companies could also reduce the rentals, helping local airlines.