Hyderabad: The 5/20 rule, which stipulates that Indian carriers be in operation for at least five years and have a fleet of 20 aircraft to be eligible to fly on international routes, is hindering the growth plans of domestic airlines, according to Amber Dubey, partner and India head of aerospace and defence at global consultancy KPMG.
“There are sufficient checks and balances to ensure safe operations of an airline. The 5/20 rule is an impediment in the growth plans of the domestic airlines,” he said.
Dubey said the rule is discriminatory and is an anti-competition policy that the industry has been opposing for many years. “Today, a one- day-old foreign airline with one aircraft in the fleet can fly into India with no entry barriers. Removal of the rule will add to the attractiveness of the Indian aviation sector,” he said.
13/04/14 B Krishna Mohan/mydigitalfc.com
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“There are sufficient checks and balances to ensure safe operations of an airline. The 5/20 rule is an impediment in the growth plans of the domestic airlines,” he said.
Dubey said the rule is discriminatory and is an anti-competition policy that the industry has been opposing for many years. “Today, a one- day-old foreign airline with one aircraft in the fleet can fly into India with no entry barriers. Removal of the rule will add to the attractiveness of the Indian aviation sector,” he said.
13/04/14 B Krishna Mohan/mydigitalfc.com
