New Delhi: Newer airlines which have been urging the government for scrapping the antiquated provision which bars them from flying overseas till they have completed five years of operations and have 20 aircraft (5/20) would soon see their wish being granted.
However, this would come at a price — they may be asked to fulfil some regional connectivity criteria before they can spread their wings. This means that if airlines like AirAsia or Tata SIA’s Vistara fly a certain quota of flights, which the Centre earmarks to smaller towns and cities, they can fly abroad.
Speaking at the Express Group’s Idea Exchange programme, civil aviation minister P Ashok Gajapathi Raju said that the 5/20 rule is antiquated and without rationale, and needed to be scrapped.
However, it needs to be replaced with something and regional connectivity is the government’s priority. Interestingly, Raju’s ministry has recently come out with draft guidelines mandating airlines to deploy on regional/remote routes the same capacity which they deploy on the 30 trunk routes. This has been opposed by all the carriers as it would increase their cost at a time when most of them are posting losses. Vistara has specifically said that newer airlines should be exempt from this rule. Raju also said that the scrapping of the 5/20 rule would enable the country to utilise higher number of seats under the bilaterals.
27/09/14 Indian Express
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However, this would come at a price — they may be asked to fulfil some regional connectivity criteria before they can spread their wings. This means that if airlines like AirAsia or Tata SIA’s Vistara fly a certain quota of flights, which the Centre earmarks to smaller towns and cities, they can fly abroad.
Speaking at the Express Group’s Idea Exchange programme, civil aviation minister P Ashok Gajapathi Raju said that the 5/20 rule is antiquated and without rationale, and needed to be scrapped.
However, it needs to be replaced with something and regional connectivity is the government’s priority. Interestingly, Raju’s ministry has recently come out with draft guidelines mandating airlines to deploy on regional/remote routes the same capacity which they deploy on the 30 trunk routes. This has been opposed by all the carriers as it would increase their cost at a time when most of them are posting losses. Vistara has specifically said that newer airlines should be exempt from this rule. Raju also said that the scrapping of the 5/20 rule would enable the country to utilise higher number of seats under the bilaterals.
27/09/14 Indian Express
