December 26, 2024

DGCA to Simplify Wet-Lease Rules, Boost Indian Airlines’ Fleet Growth

The DGCA is set to ease wet-lease regulations, allowing Indian airlines to expand fleets quickly amid supply chain delays and rising demand for air travel.

Indigo

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India’s Directorate General of Civil Aviation (DGCA) is preparing to simplify its regulations for wet-leasing, offering Indian airlines a streamlined process to lease foreign aircraft. This move aims to support the industry’s growth, especially amid rising travel demand and ongoing supply chain challenges that have delayed aircraft deliveries.

Wet-leasing, where airlines lease foreign aircraft with crew, maintenance, and insurance, has become a vital option for airlines such as IndiGo and SpiceJet to quickly expand their fleets while awaiting new aircraft. In contrast, dry-leasing involves leasing only the aircraft, with the airline taking full responsibility for operations.

Under the new regulations, the DGCA will gain better oversight of wet-leased aircraft, as airlines will need to submit flight and maintenance records to the DGCA. While the crew will mostly consist of the airline’s own staff, pilots will be sourced from the foreign leasing entity, following the regulations of the foreign aviation authority.

A key element of the reform is an enhancement of safety standards. Aircraft will now only be leased from countries with high safety scores, ensuring compliance with international safety protocols. The revisions also aim to address issues such as aircraft groundings, notably in airlines like IndiGo, which have faced engine problems with certain models. These changes are expected to boost India’s aviation sector, providing airlines with the flexibility they need to meet soaring travel demand.

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