The government has given in-principle approval to no-frill carrier IndiGo to start the process of acquiring 150 aircraft in addition to the 100 planes for which it has already placed orders.
The Aircraft Acquisition Committee of the civil aviation ministry, which approved the IndiGo request in principle, also gave similar approval to a proposal of the Chennai-based business class airline Paramount Airways to acquire 10 aircraft from the Canadian aircraft manufacturer Bombardier and European ATR, official sources said.
IndiGo currently has a fleet of 25 Airbus A-320s out of the 100 planes it ordered in 2006 when it was launched. It expects to induct the rest by 2015.
"The new (150) aircraft will start coming in after 2015. What the airline had sought now was permission to place fresh orders to buy 150 new planes," sources close to the development told PTI.
With this approval, IndiGo can open talks with leasing companies and aircraft manufacturers for acquiring these additional planes.
On the other hand, Paramount has plans to acquire a mix of Embraers and turboprop ATR planes totalling ten. It has almost finalised its discussions with aircraft manufacturers and leasing companies on its aircraft acquisition plans.
Paramount's scheduled operator's licence currently stands suspended as it does not fulfil the criteria that a scheduled airline must have a fleet of five aircraft. But the airline has been operating one aircraft primarily on its southern India network.
The Aircraft Acquisition Committee, which gave the approval, looks at a variety of issues, including availability of slots at airports, before approving any airline's proposal for import of aircraft.
The decision comes in the backdrop of indications about the return of bullishness in the Indian aviation market.
In its latest assessment, the International Air Transport Association has said that even after the damage caused by the volcanic ash plumes, airline share prices were still 15 per cent up in 2010 and their financial results were bullish.
Both IndiGo and Paramount would become eligible to start international operations in 2011. An airline can launch global operations after completing five years of domestic operations and having a fleet of at least 20 planes.
