Wednesday, April 01, 2015

AirAsia India, Vistara's international plans may run into turbulence with new govt policy

New Delhi: The big daddies of Indian aviation industry remain united in opposing any move to remove the 5/20 rule. Jet Airways, IndiGo, SpiceJet and GoAir besides Air India hold firm in their view that new airlines, Vistara and AirAsia India, should also be subject to this rule. The incumbents, under the aegis of Federation of Indian Airlines (FIA), said in a letter to the Ministry of Civil Aviation late this evening that the 5/20 rule need not be abolished since any change in this rule will remove level playing field conditions. Air India is not part of FIA but has been concurring with the view of this lobby group anyway.
The ministry has proposed new rules to replace 5/20 rule and sought views from all airlines by Tuesday evening. The 5/20 rule bars domestic airlines from flying anywhere abroad unless they have completed five years of Indian operations and have a fleet of 20 aircraft. It is a rule unique to India and has been responsible for Indian carriers failing to compete with foreign airlines in carrying people to international destinations. No such restrictions are placed by other countries on their respective airlines.
01/04/15 Sindhu Bhattacharya/First Post
To Read the News in full at Source, Click the Headline