MoCA abolishes Aircraft Acquisition Committee

The Ministry of Civil Aviation (MoCA) has abolished the Aircraft Acquisition Committee (AAC).

The ACC controlled acquisition of aircraft by scheduled and non-scheduled operators, private operators and flying training institutes. The permission for actual induction of aircraft will no longer be required from the MoCA. Only, No Objection Certificate (NOC) for operating scheduled air transport services and non-scheduled air transport services including regional air transport services, and in-principle approval for acquisition of aircraft by scheduled operators will be required from the MoCA. This requirement falls under Rules 134 and 134A of the Aircraft Rules and the RBI guidelines to facilitate acquisition of aircraft.

Minister of Civil Aviation, Ajit Singh said, “The Aircraft Acquisition Committee (AAC) as it is no more relevant. The matter relating to initial No Objection Certificate and in-principle approval for acquisition of aircraft by scheduled operators will now be processed by concerned division of the Ministry.”

Currently, the MoCA approval is required for issuing initial NOC in cases of scheduled airlines, non-scheduled airlines, flying institutes and private category.  Besides this, MoCA’s approval is also required for acquisition of aircraft by scheduled and non-scheduled operators, flying training institutes and for private use and also for replacement of aircraft.  After implementation of this decision, no approval from MoCA will be required by anybody for actual import / replacement of aircraft and all such cases will be dealt by the DGCA for completion of necessary formalities.

This decision is another major step towards liberalization in the civil aviation sector after allowing 49% FDI in airlines.  This will remove duplication and also reduce delays in seeking approval and will do away with the cumbersome procedure which airlines have to follow before acquisition of aircraft.  The decision will help airlines to plan better for future induction of aircraft and also maintain timeliness of acquisition.

Permissions accorded for acquisition of aircraft with effect from December 2011 to March 2013.

Total Approvals viz-a-viz application by scheduled airlines/private airlines are as under: