The government should abolish 5/20 rule for the Indian airlines as it demands that an airline must have at least 20 planes and run domestic operations for five years before being eligible to start overseas flights, Tata Sons Chief Ethics Officer and Vistara Director Mukund Rajan told the Economic Times in an exclusive interview.
He said that the rule should be scrapped as local carriers that can go abroad cater to just 30% of Indians travelling overseas because of lack of capacity.
Vistara is India's newest airline which is jointly owned by the Tata Group and Singapore Airlines.
On being asked about the reason behind Tata Group's decision to enter the airline business, he said the company tried twice to enter the aviation sector but it never happened due to some reasons. "When the previous administration allowed foreign airlines to own stakes in Indian airlines, we were approached by AirAsia first and Singapore Airlines and both were with different kinds of offerings," he told the financial daily.
06/07/15 BI India Bureau/Business Insider
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He said that the rule should be scrapped as local carriers that can go abroad cater to just 30% of Indians travelling overseas because of lack of capacity.
Vistara is India's newest airline which is jointly owned by the Tata Group and Singapore Airlines.
On being asked about the reason behind Tata Group's decision to enter the airline business, he said the company tried twice to enter the aviation sector but it never happened due to some reasons. "When the previous administration allowed foreign airlines to own stakes in Indian airlines, we were approached by AirAsia first and Singapore Airlines and both were with different kinds of offerings," he told the financial daily.
06/07/15 BI India Bureau/Business Insider
