NEW DELHI: The civil aviation ministry has put in motion a process to scrap the controversial Domestic Flying Credit (DFC) model, which was proposed as replacement for the so-called 5/20 eligibility norms for Indian carriers to launch overseas operations but was opposed by all airlines. Under the 5/20 rule, an airline must have at least 20 aircraft and five years of experience in domestic operations before seeking to spread its wings abroad.
The ministry, under the new secretary RN Choubey, believes that one such regulation cannot be replaced by another regulation, officials said.
"It does not make any sense to replace one regulation by another. Instead of simplifying it, we will only complicate it. The DFC model is being reviewed now and is likely to be junked because it does not make any sense," said a civil aviation ministry official, who did not want to be identified. The government will now look at a simpler alternative to the 5/20 rule, he said.
The earlier plan was to replace the 5/20 norm with the DFC model, under which airlines can collect domestic flying credits and encash those for international flying rights. All Indian carriers had opposed the DFC model, saying it is too complex. Even the new airlines such as Vistara and AirAsia India, which were keen on scrapping of the 5/20 rule, said that the DFC model is too complex.
02/07/15 Mihir Mishra/The Economic Times
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The ministry, under the new secretary RN Choubey, believes that one such regulation cannot be replaced by another regulation, officials said.
"It does not make any sense to replace one regulation by another. Instead of simplifying it, we will only complicate it. The DFC model is being reviewed now and is likely to be junked because it does not make any sense," said a civil aviation ministry official, who did not want to be identified. The government will now look at a simpler alternative to the 5/20 rule, he said.
The earlier plan was to replace the 5/20 norm with the DFC model, under which airlines can collect domestic flying credits and encash those for international flying rights. All Indian carriers had opposed the DFC model, saying it is too complex. Even the new airlines such as Vistara and AirAsia India, which were keen on scrapping of the 5/20 rule, said that the DFC model is too complex.
02/07/15 Mihir Mishra/The Economic Times
