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Govt relents, puts off aircraft buying for IA

The Union government has put on hold all policy decisions, including buying or leasing aircraft, until after the September-October national elections.

"The ministry of civil aviation has put on hold any policy decision and new initiatives till a new government is formed," a government statement said.

The decision also applies to government-run firms, including national carriers Air-India and Indian Airlines. The two airlines are on the lookout for new aircraft to boost their existing fleet as also replace ageing craft.

Industry analysts were not clear as to whether private airlines operating within India can buy new aircraft during the period. Private airlines need government permission for import of aircraft.

The government move would freeze invitation of commercial bids, technical evaluation, and the financial evaluation of bids for aircraft acquisition.

However, it would not apply to routine sourcing of spares and equipment.

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