India's Economic Survey for 2013-14 Wednesday said that the government approved the aircraft import period of airlines from five years to 10 years on account of longer waiting period for aircraft delivery.
Earlier, the maximum period allowed for the import of aircraft stood at five years, but due to robust international demand and lack of domestic industry, the time line has been increased.
The survey noted that AirAsia and Tata-Singapore Airlines applied for making investment into the domestic airlines sector in the period under review. Under the new policy, foreign airline groups can invest up to 49 percent in equity of an existing or a new domestic airlines in India.
Recently, AirAsia India started its maiden operations in the country focusing on regional routes in south India.
Currently it operates two services to Goa and Chennai from Bangalore and is starting third service to Kochi July 20. It plans to induct nine more Airbus A-320 aircraft to launch services to more destinations.