As per the Indian laws, levies of about 19-20% are charged on the aircraft import for personal use; but the non-scheduled operators are charged merely 3-4% for it
Conflict is brewing between private charter companies and the Directorate General of Civil Aviation. The private charter operators have opposed the aviation regulator's plan to cancel operating licenses of those non-scheduled companies which import aircraft from abroad and then use them for their parent companies or for their top executives' personal use. DGCA's rationale behind the move is that many corporate companies shirk paying higher levies by floating a separate aviation company for their own aircraft.
As per the Indian laws, levies of about 19-20% are charged on the aircraft import for personal use; but the non-scheduled operators are charged merely 3-4% for it. As per aviation parlance, non-scheduled aircraft operators are those airline companies which don't have a fixed schedule and fly as and when required. Scheduled aircraft operators are the airline companies like Air India, Spicejet, Indigo, etc which have fixed schedules for plying their services.
Private charter companies claim that the DGCA is ill-advised in its attempt to amend the existing rules for operations of non-scheduled aircraft operators (NSOPs), by citing that the rules are being misused by large corporate houses to avoid payment of aircraft import duties. The Civil Aviation Requirement (CAR) on operation of NSOPs was issued in June 2010, and revised recently in November 2014. The applicability and scope of NSOP operations, as described in para 2 of the CAR, clearly allows revenue charter flights for a company within its group companies. Most importantly, only if there is any reported misuse by the companies, the government can initiate an investigation by an appropriate investigating agency.
Group. Capt. (Retd) RK Bali, MD of Business Aircraft Operator's Association (BAOA), an association representing business aircraft operators, said, "The primary role of DGCA is that of a safety regulator and as such, it should remain within its domain of expertise. The Department of Customs and Excise is well equipped to investigate the violation of customs laws, and DGCA should refrain from getting involved in matters which it is not an expert on."
Industry insiders claim that it is ridiculous to expect that a company which owns aircraft in its own group company, is actually being asked to charter aircraft owned by another company. Further even though these aircraft have involved payment of low import duties, they generate revenue for the government by way of service tax, which is paid for every chartered flight that is carried out on these aircraft, even if used by group companies. "Over a period of time this makes up for any perceived revenue loss to the Government. Besides, these aircraft are also available for carrying out the regional and remote area connectivity, which is essential to the policy that the new government is trying to implement," said a BAOA official.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}