CHC Helicopter Corp. to start Indian operations

In the first foreign investment in a non-scheduled air service in India, the world’s largest helicopter service company, Canada-based CHC Helicopter Corporation, will acquire a 49% stake in an Indian venture, CHC Helicopters Services India. Under current regulations a maximum of 49% FDI is allowed in non-scheduled airlines, though the government is considering an increase to 74%. CHC will acquire shares from the Indian promoters of CHC India—Gautam Philip and Vivek Berry. CHC India now has an authorised share capital of Rs 5,00,000, comprising 50,000 shares of Rs 10 each.

After the share purchase, the equity capital of CHC India will be hiked to at least Rs 2 crore to meet the minimum capital requirement for operating a non-scheduled airline. Non-scheduled airlines with a fleet of three aircraft need a minimum paid-up equity of Rs 1 crore. Non-scheduled carriers with a fleet of four to 10 aircraft need a minimum paid-up capital of Rs 2 crore, while for airlines with over 10 aircraft, the paid-up equity needs to be Rs 5 crore. To meet the minimum capital requirements, the present shareholders of CHC India will also invest in the company through one of its investment arms.

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