 "Aircraft operators body seeks separate law for general aviation")
Business Aircraft Operators’ Association (BAOA), a three-year-old body dedicated to promote business aviation in India, has called for a separate regulatory framework for general aviation (GA) and allow it to grow legitimately as a business venture that creates profits both tangible and intangible besides adding to the GDP.
“Indian corporates are realising business aviation as a vital commerce tool. However, the government is still perceiving it as personal indulgence and corporate excess. We have requested the Directorate General of Civil Aviation (DGCA) to re-validate regulations with specific regulations for BA and create a roadmap for its growth for the next 10 to 20 years,” Rohit Kapur, president of BAOA, told mediapersons here on Tuesday.
Stating that India had a BA fleet of 170 aircraft in 2001 and 204 in 2003, he said the sector saw the start of decline in the growth rate since 2007 because of Customs duty on import of private aircraft and NSOPs (non-scheduled operator’s permit), infrastructural constraints, regulatory apathy and high-cost of operations.
The total inventory value of GA aircraft in India is over Rs 12,000 crore. It provides direct employment of 12,000 and an equal number indirectly.
Kapur said Customs duty and taxation on imports were also stymieing the growth. “Imposition of Customs duty significantly reduced the growth rate of the industry. People are shunning aircraft ownership,” he said, adding that around Rs 400 crore was collected as Customs duty in the last seven years.
“Indian corporates are realising business aviation as a vital commerce tool. However, the government is still perceiving it as personal indulgence and corporate excess. We have requested the Directorate General of Civil Aviation (DGCA) to re-validate regulations with specific regulations for BA and create a roadmap for its growth for the next 10 to 20 years,” Rohit Kapur, president of BAOA, told mediapersons here on Tuesday.
Stating that India had a BA fleet of 170 aircraft in 2001 and 204 in 2003, he said the sector saw the start of decline in the growth rate since 2007 because of Customs duty on import of private aircraft and NSOPs (non-scheduled operator’s permit), infrastructural constraints, regulatory apathy and high-cost of operations.
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“In 2013, India had a BA fleet of 552 aircraft. Today, we are seeing a negative growth. In 2012, we predicted the BA fleet to touch 1,793 by 2020. However, there is a digression in predicted trajectory now. We expect the fleet to reach only 922 by 2020. This dismal performance is due to poor induction rate, among others,” he added.
The total inventory value of GA aircraft in India is over Rs 12,000 crore. It provides direct employment of 12,000 and an equal number indirectly.
Kapur said Customs duty and taxation on imports were also stymieing the growth. “Imposition of Customs duty significantly reduced the growth rate of the industry. People are shunning aircraft ownership,” he said, adding that around Rs 400 crore was collected as Customs duty in the last seven years.