The government has decided to ban import of aircraft that are over 12 years old. The move, aimed at ensuring newer fleets, will push up the cost of leasing and hiring aircraft by around 30 per cent, industry sources say. However, the rule will be applicable only on future deals.
Low-cost carriers, most of which take older aircraft on lease to cut costs, will be the hardest hit by the move, which will be a part of the new civil aviation policy.
The cost of taking new aircraft on lease is around 40 per cent more than the older aircraft. This cost has already gone up by 40 per cent in the last 12 months due to a boom in the global aviation market.
As most new aircraft in the lease-and-purchase market have been taken by the existing carriers, new airlines are depending on older aircrafts to build their fleet.
However, the existing Indian carriers are unlikely to face any major problem as most of them are going for new aircraft.
According to estimates, the average age of aircraft flown by Indian carriers is seven years, but state-run carriers like Air-India and Indian Airlines have some aircraft which are over 12 years old.
The age of the aircraft has nothing do with the safety of the aircraft, as the airline will have to adhere to strict minimum safety norms, which are the same for both new and old aircraft.
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