InterGlobe gets 2 months time to start operations

Giving a breather to the low-cost carrier InterGlobe, the government has decided to extend the no-objection certificate granted to it to start operations by another two months.

This will give more time to the carrier, which has made a big ticket plan to buy 100 Airbus aircraft - the biggest single order ever from India - to start operations.

In addition, the government has also allowed it to import two aircraft to start operations.

With this, InterGlobe will now be able to start its air services soon. Its application with the government was stuck, as the regulators wanted the airline to point out the airports it wanted to park the 100 aircraft.

Sources also said that the government's aircraft acquisition committee has allowed DLF Universal to acquire a Gulfstream aircraft to start its non-schedule operations.

Last month DLF was allowed to start operations.

With this approval, the real estate company will be able to kick start its airline operation. To start an airline, a company needs permission from the aircraft import committee of the government to bring in aircraft to the country as well as a no-objection certificate.

Government sources also said that the company has indicated that it will want to import jets and other passenger aircraft to operate services between multiple cities.

As per the industry estimate, in the Indian domestic aviation market that is worth about Rs 20, 000 crore a year, the non-schedule operators have a share of about 10 per cent.

In addition, the aircraft import committee has also allowed about four existing airlines to import about 100 aircraft.

In the process, the government has also given permission to InterGlobe to import two Airbus A-320s, the first tranche of the 100-aircraft order that it placed with the European aircraft maker Airbus.

Vijay Mallya's Kingfisher Airlines has walked away with permission to import 80 aircraft "� 29 Airbus A-320s, four Airbus A-321s, 56 ATRs "� to straighten the carrier's fleet.