January 10, 2012, 3:35 PM
India does not levy a customs duty on foreign-registered aircraft if they fly out within 15 days of arrival into the country. Many Indian companies with subsidiaries in foreign countries having the same chairmen choose to keep the U.S. registration as India has complex bureaucratic processes. For example, India’s Directorate General of Civil Aviation (DGCA) does not allow cross-utilization of pilots from one aircraft to another and should a pilot fall sick, it is easier to replace him or her if the aircraft is registered overseas. Clearances for getting heavy maintenance and for pilot training from DGCA can also prove to be impediments. In addition, there is a general belief among private and corporate owners in India that foreign-owned aircraft retain a higher resale value.