Domestic private airlines, including IndiGo and GoAir, are crying foul over the government’s proposed move to replace the existing overseas flying rule, also called 5/20, for start-up carriers with a new method based on domestic flying credits (DFCs).
The Federation of Indian Airlines (FIA), an industry body of private airlines with IndiGo, Jet Airways, SpiceJet and GoAir as its members, has said the government move was intended to accommodate only one private carrier (read Tata-SIA joint venture Vistara) at the cost of entire aviation industry.
While the present rule requires an airline to serve the domestic market for five years and have a minimum fleet size of 20 aircraft for qualifying to launch international operations, the new formula enables an airline with five airplanes of A320 size to start overseas flights in the very first year of operations by earning 200 crore DFCs.
As per the suggested formula, an airline would be earning more flying credits by operating to far-flung and distant destinations in hilly areas and the North East region.
22/01/15 Nirbhay Kumar/Mydigitalfc
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The Federation of Indian Airlines (FIA), an industry body of private airlines with IndiGo, Jet Airways, SpiceJet and GoAir as its members, has said the government move was intended to accommodate only one private carrier (read Tata-SIA joint venture Vistara) at the cost of entire aviation industry.
While the present rule requires an airline to serve the domestic market for five years and have a minimum fleet size of 20 aircraft for qualifying to launch international operations, the new formula enables an airline with five airplanes of A320 size to start overseas flights in the very first year of operations by earning 200 crore DFCs.
As per the suggested formula, an airline would be earning more flying credits by operating to far-flung and distant destinations in hilly areas and the North East region.
22/01/15 Nirbhay Kumar/Mydigitalfc
