Just when prospects were brightening for small air service companies due to changes proposed in a policy for improving air connectivity, they have been jolted by the Government’s suggestions for tightening the norms governing discordant voices have been there ever since the Director General of Civil Aviation (DGCA) suggested plans to amend the rules for Non Scheduled Operators Permit (NSOP) holders, the Business Aircraft Operators Association (BAOA) on Wednesday formally registered its opposition.
"This appears to be a knee jerk reaction which will force a large number of operators to shut shop. Moreover, it will impair utilization of more than 150 aircraft for charter and other services throughout the country," said BAOA President Rohit Kapur.
"One really needs to understand the rationale and what is DGCA trying to achieve through such a notice. While we are willing to work with them to find answers, such an amendment is certainly not a solution to anything," he added.
The issue revolves around the DGCA’s proposed amendment which mandates that NSOP holders must have at least three aircraft. Existing operators have been given a year’s time to fulfil this requirement or shut shop. In the letter to DGCA, the association pointed out that operating one or two aircraft in no way reduces the safety oversight responsibility of DGCA "which appears to be the purpose of this amendment". This will result in the closure of 80 out of 120 NSOP and trigger at least 4,000 job losses.
"Increasing the fleet strength from one to three aircraft requires heavy financial commitments, which are beyond the reach of most NSOPs. There is very little business sense to invest in more aircraft at a time when demand in general and business aviation has been sluggish over the past many years." It also pointed out that the rules in the US, the UK and Canada, considered as a benchmark globally, has no such limitations.
