Air transport is a major business with great potential as well as risks. Air logistics businesses, in particular, have attracted growing interest from entrepreneurs because of the high potential for growth and the low risk of starting up. In an air logistics business, operators provide services related to handling goods that are being transported by air.
The operator does not own any aircraft or other goods but handles them on behalf of others and charges for their services. In addition to other restrictions, an air logistics business needs certain licenses from the government before it can operate. This article explains what licenses are required in an air logistics business as well as the different types of licenses available.
What are the different types of licenses required in an air logistics business?
An air logistics operator can start off with a number of different licenses depending on the services it offers. The type of license required will depend on the type of air logistics business an operator wants to start. In addition to the licenses required for specific operations, the company will also require a license from the Indian government to operate in the country.
A business that plans to export goods from India will need an import/export license. The licenses required for an air logistics business are as follows. – Import/export license – Delivery permit – Aircraft maintenance license (AML) – Airline license – Other licenses required in an air logistics business
Import/export license
An import/export license is required to import goods and export goods from India. In India, the import and export of goods are regulated by the Bureau of Indian Standards (BIS) under the Department of Industrial Policy and Promotion. An import/export license is required to import and export goods.
To be eligible for an import/export license, a person must be registered with BIS, have valid identity proof, and be over the age of 18 years. Import and export of goods are regulated to ensure that there are no restrictions on the movement of goods and that they are not being imported or exported in contravention of laws. Exporting goods from India is allowed under certain conditions. Importing goods from other countries is allowed under certain conditions.
Delivery Permit
A delivery permit is required for operators who want to receive goods from a customs agent for handling. The operator must be registered with the government customs authority and must have valid identity proof. The permit is issued for a specific period of time, for example, for one year. Once the permit is issued, the operator can receive and store the goods from the customs agent and then deliver the same to the consignor.
The permit is valid wherever the operator is authorized to operate. In order to receive and store the goods, the operator must have a storage place approved by the government. If the operator operates a business that transports the goods, then they must have a valid vehicle registration document, too.
Aircraft maintenance license (AML)
An aircraft maintenance license is required to undertake maintenance of any aircraft that is registered under the government. While the operator can work on any aircraft, they will need an AML if they want to work on an aircraft registered under the government.
A person who wants to carry out maintenance on aircraft must have valid identity proof, be 18 years of age or older, and have a valid employment contract with the company where they are employed. They must also have a valid aircraft maintenance license issued by the Aircraft Maintenance Engineers’ Association (AMEA).
Airline license
To operate an airline, the operator must first operate an air charter business, which is not allowed. If the operator wants to operate an airline, they must first obtain an airline license from the Directorate General of Civil Aviation (DGCA). The airline license is issued for a period of three years.
The operator must have a suitable airport to operate the airline, for example, a domestic airport. The operator will also need to have a government license, such as a lease agreement with a private party to operate the airline. The airline license is granted for a period of three years, but it can be renewed after the first three years.
Other licenses required in an air logistics business
Apart from the licenses mentioned above, the operator in an air logistics business will also need to obtain relevant permissions from other government agencies, such as the Directorate General of Shipping, the Directorate General of Health Services, and the Directorate General of Foreign Trade.
Other licenses required in an air logistics business include a licensing agreement with the government, a fleet and aircraft maintenance agreement, insurance, permits, and licenses from other government agencies. All these licenses must be renewed and obtained on a regular basis.
Licensing process for starting up an air logistics business
Before starting up an air logistics business, the operator must get a business proposal approved and an offtake agreement signed with the buyer. The operator must also have a suitable place in which to operate the business, such as leased premises, or a place where they have been given a license to operate, such as an airport. After the business proposal and agreement are approved, the operator must apply for a license from the government.
For example, if the business proposal involves operating an air charter business, the operator must apply for an import/export license. The application for the license will be submitted to the department/commissioner from which the operator is required to get the license. After getting the license, the operator must confirm their authorization in the business proposal by signing a confirmation of authorization form.
The operator must then apply for the relevant licenses from other government agencies. For example, if the business proposal involves operating an airline, the operator must apply for an air transport permit from the DGCA, an aircraft maintenance license from AMEA, and a fleet and aircraft maintenance agreement from the Directorate of Civil Aviation.
After getting the license, the operator must apply for the relevant permissions and permissions renewals. For example, the operator must apply for a delivery permit, customs permission, aircraft maintenance permission, and insurance permission.
Conclusion
An air logistics business provides a range of services on behalf of the consignor and consignee, such as customs clearance, delivery, transportation, and storage. These services are provided by an air charter operator, an airline, or a third-party contractor. Depending on the type of license required and the services offered, the business can be owned and operated by one person or a company.
Air logistics businesses are high-growth businesses that can provide significant advantages for entrepreneurs. The Air logistics business provides a great opportunity for anyone. For more information about starting up an air logistics business, please contact a business consultant.
