New Delhi: With Vistara, the Tatas are hoping to be third time lucky in the aviation sector. This airline is a joint venture between Tata Sons and Singapore Airlines and from day one, Vistara has been lobbying for removal of the 5/20 restriction. But what will Vistara do in case 5/20 rule were to continue? Chairman Prasad Menon asserted today that the airline's plans would remain unchanged - whether 5/20 restriction is lifted or not.
The 5/20 rule bars Indian airlines from flying overseas unless they have completed five years of Indian operations and have a fleet of 20 aircraft. This means Vistara and sister airline AirAsia India cannot do any overseas flights for the first five years. The ministry of civil aviation is working on a draft civil aviation policy where it will reveal its mind on the 5/20 issue too, apart from a range of other industry issues. Indications are that one option the ministry will propose is that new airlines like Vistara be allowed to fly overseas immediately. The only condition could be a commitment for increased domestic connectivity.
06/10/15 Sindhu Bhattacharya/First Post
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The 5/20 rule bars Indian airlines from flying overseas unless they have completed five years of Indian operations and have a fleet of 20 aircraft. This means Vistara and sister airline AirAsia India cannot do any overseas flights for the first five years. The ministry of civil aviation is working on a draft civil aviation policy where it will reveal its mind on the 5/20 issue too, apart from a range of other industry issues. Indications are that one option the ministry will propose is that new airlines like Vistara be allowed to fly overseas immediately. The only condition could be a commitment for increased domestic connectivity.
06/10/15 Sindhu Bhattacharya/First Post
