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Government to allow wet lease of aircraft from any source

The civil aviation ministry has amended its guidelines to allow wet lease of aircraft from any source, including foreign airlines.

The wet leasing of aircraft will be subject to the fulfillment of guidelines issued by the government, the ministry said.

Till now, leasing of aircraft by airlines in India was only allowed from leasing companies. The guidelines, which were announced recently, lay down that a leasing company giving aircraft to an operator in the domestic air transport sector should not be part of an airline.

The BJP government after coming to power had come out with new guidelines for interpretation of indirect investment of foreign airlines.

The domestic air transport policy provides for foreign equity participation up to 40 per cent and investment by NRI citizens and overseas corporate bodies up to 100 per cent in the domestic air transport services. Foreign airlines are not permitted to pick up equity directly or indirectly.

UNI