India’s DGCA streamlining aircraft wet leasing

The Directorate General of Civil Aviation (DGCA), the Indian aviation watchdog, is to streamline regulations for Indian airlines to wet lease aircraft to boost their operations. The new streamlined rules will entail enhanced oversight of the leased aircraft. There are several reasons which are promoting this move. One of the important is that supply chain issues continue, which are not only leading to delays in aircraft delivery but also to vendors not being able to deliver passenger seats to airlines in India. The delayed delivery of seats has caused Air India to push back the refurbishment of its Boeing 777 and 787 Dreamliner aircraft (Suppliers delay Air India fleet growth |). Besides, airlines are also facing engine issues. IndiGo has often said that its aircraft are on the ground due to Pratt & Whitney engine issues, although the number of such aircraft is slowly decreasing. IndiGo has a share of over 60 percent in the domestic market. Dry lease and Wet lease Generally, wet leasing involves leasing foreign aircraft, crew, maintenance, and insurance. The plane is also under the operational control of the foreign operator (lessor) and subject to regulatory requirements of the concerned foreign civil aviation authority. In dry leasing, the carrier takes only the aircraft. IndiGo and SpiceJet operate wet-leased planes, while Air India flies some dry-leased aircraft. Generally speaking, globally, a wet lease of an aircraft is more expensive than a dry lease, as crew costs, maintenance costs, and insurance costs are built into the monthly lease rentals. Groundwork started in September In September of this year, DGCA issued a draft for public consultation on the revised Civil Aviation Requirements (CAR) for wet/damp lease operations by Indian operators, strengthening the regulatory framework for the safety oversight of these operations. "The enhanced regulatory framework and changes proposed in the draft CAR includes restricting the wet/damp lease only from the countries having a reliable safety oversights system as well as standardization of DGCA surveillance on such operations," the regulator said on September 12. Among the proposed changes was that an aircraft can be wet-leased only from ICAO (International Civil Aviation Organisation) contracting states with an average effective implementation score of 80 percent or above (with a minimum of 70 percent in each area) in personnel licensing, airworthiness, and operations. This should follow the latest ICAO Universal Safety Oversight Audit Programme (USOAP) results. The new streamlined rules in India are expected to be announced any day now. Why the move by the Indian authorities now? The move is being contemplated as travel demand in the country is rising, and Indian airlines are adding new domestic and international routes. There are also other reasons,s among which are: Peak travel season India is witnessing a surge in travel demand due to various factors, including the fact that this period is considered auspicious for weddings. The period stretches from mid-December to February next year. It is common for people to travel in large numbers during the marriage season to attend weddings. Besides, this year has also seen several holidays falling on days that allow people to take extended periods of leave by taking one or two days off. The Christmas and New Year break is also expected to see people take to the air to escape from the big cities in India. Airlines are adding new routes both domestically and internationally Earlier this week, Air India Express announced the launch of four new routes from Bhubaneswar as a part of the airline’s expansion plan in eastern India. The airline said these services will connect the Odisha capital to Jaipur, Lucknow, Kochi, and Patna. Services to Jaipur and Kochi will commence on January 3, 2025, followed by flights to Lucknow on January 4 and Patna on January 15. Air India Express is a subsidiary of Air India and part of the Tata group. On November 28, Akasa Air, India’s newest airline, announced daily direct flights connecting Abu Dhabi with Bengaluru and Ahmedabad starting March 1, 2025. The new routes complement Akasa Air’s daily service between Mumbai and Abu Dhabi, inaugurated in July 2024. The airline started operations in August 2022. IndiGo also announced that it would start a daily service linking Bengaluru with Langkawi in Malaysia from December 15 this year. It also started a Pune to Abu Dhabi daily service on November 23,

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