vivekman wrote:

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July 7, 2006

In a move to constrain foreign intervention in the Indian aviation industry, the government has decided to disallow airlines from dry-leasing aircraft from international airlines, or aircraft from leasing companies that are a part of an airline.

http://www.talkingtarmac.com/order/dry-lease.asp

Any comments on this policy?

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A very wise move, this should keep Sin and Dxb out of the indian market. These 2 govt are directly and indirectly dependent on their respective state owned airlines and associated subsidaries for the existence of these states. EK might claim to be playing on level playing field, but the abscence of collective bargaining by labour and the biased judicial system in that country does help DXB control any form of dissent or disruption from affecting the operation of EK,the life line of that country.

Both these airlines SQ and EK have ordered aircrafts in excess of their organic growth requirements. SQ & EK by locking up manf slots thru LOI with the OEM creates barriers for purchase of these aircrafts by airlines in need to fufill their traffic growth, invariably leading to these growing airlines approaching SQ or SALE to lease their aircrafts. Again here SQ manages to score brilliantly by offering 10-15yr old aircraft from its fleet and uses these new aircrafts that it had blocked by signing the LOI. AI is flying 20yr old ex SQ A310 while SQ has replaced these with B777 (SQ was very happy with the A310 and unsuccessfully persuaded Airbus to manf the A310 replacement, they offered the A330-100), because of the nature of their restricted markets where the state and the industry are connected with one umbilical chord SIN and DXB manage to orchestrate aviation industry atleast in Asia to their advantage. This is a good indicationto them to keep off.

I hope the GOI stays steadfast in their resolve to deny these unscruplous operators access to the indian market. I know there are many among you woud like me to substantiate my statements above with proof. All i can say to that is compare these 2 airlines like for like with airlines in India on terms of their exposure to labour laws, transparent accounting (9W is still stuck with the funding issue), discrimination laws ( SQ can never ever get away with the sarong their hosties wear in any other part of the world, it is very sexist and has been objected to by many wmen org, MH has a more conservative sarong) and threat of investigative journalism.