India Simplifies Wet Leasing Rules for Aircraft

In December 2024, the Ministry of Civil Aviation announced the finalization of revised rules simplifying wet leasing of aircraft by Indian carriers to counter global plane shortages and rising airfares.

Key Points

Enhanced Flexibility: Airlines can deploy wet-leased planes on alternate routes, improving operational efficiency.
Mandatory Safety Oversight: Lessors must meet International Civil Aviation Organisation (ICAO) safety standards, with periodic maintenance and safety data furnished to the Directorate General of Civil Aviation (DGCA).
Incident Reporting: Indian airlines must report incidents involving wet-leased aircraft within 24 hours and provide access for DGCA inspections.
Capacity Expansion: IndiGo and SpiceJet have leveraged wet leasing to tackle grounded fleets, with IndiGo operating 25 wet-leased planes and SpiceJet adding six.
Strategic Move: The updated norms aim to reduce airfare hikes by mitigating supply chain issues delaying aircraft deliveries and maintenance.