Sunday, December 14, 2014

Local airlines pull strings for & against the 5/20 rule

New Delhi: Domestic airlines have begun frenzied lobbying for and against the proposed government move to scrap the existing norms stipulating mandatory five years of operations in the domestic market and a minimum fleet of 20 aircraft to be able to fly overseas.

While the airlines already flying on international routes insist that these restrictions should stay, those seeking to make a debut on overseas routes are pushing for flexibility on the 5/20 rule.

Any move to dilute the existing eligibility criteria for flying overseas will benefit the newly set-up Tata Sons’ joint ventures Vistara and Air Asia India, and open up the protected turf of carriers like Air India, Jet Airways, IndiGo, SpiceJet and GoAir to further competition.

In the face of intense opposition from the established players, the aviation ministry is burning midnight oil to hammer out a “please all and consensual” policy, which is likely to be unveiled by January 10.
14/12/14 Nirbhay Kumar/mydigitalfc.com
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