Tuesday, January 28, 2014

Desi airlines against 5/20 rule removal to fly abroad

New Delhi: The government's proposed move to completely do away with the requirement that an Indian airline must complete five years in service and should have a fleet of at least 20 planes before it is allowed to fly abroad, has led to strong opposition from domestic airlines. The objection comes essentially from the fact that the removal of this rule will help the soon-to-belaunched Tata Sons airlines — a full service carrier with Singapore Airlines and a budget one with AirAsia — and will enable them to fly abroad right after launch whereas all existing players had to pass the 5/20 condition to get access to the lucrative overseas routes.
At present, all Indian carriers meet this requirement except Wadia Group's GoAir, which has completed five years in service and will have 20 aircraft in its fleet by July, 2014. The proposed policy change is only for the benefit of the new players even as existing players bled heavily to first fulfil this requirement before flying abroad, domestic airlines said. The Federation of Indian Airlines, (FIA) a representative body of Indian airlines, wrote to aviation secretary Ashok Lavasa earlier this week, expressing "serious concern and to lodge strong protest" over the proposed abolition of the 5/20 rule.
28/01/14 Times of India
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