Kochi: There is no better word than ‘optimism’ to describe the efforts of the state government to start its own Airline, Air Kerala to rescue around 2.5 million NRKs from the clutches of airlines during peak season. The companies, including Vistara (joint venture between Tata Sons and Singapore Airlines), Air Asia, Air India, Jet Airways, IndiGo, SpiceJet and Air Kerala are lobbying before the Centre to do away with the 5/20 rule, which prohibits them from international operations.
According to 5/20 norms prescribed by the Ministry of Civil Aviation, an airline company should have a minimum experience of five years in domestic operations and a fleet of 20 aircraft required to commence international operations.
“We are hopeful that the government will relax these norms. The original purpose of Air Kerala is to serve NRKs in the Gulf region by protecting them against exploitation. If domestic operations are started, they will not serve the true purpose of the project. Now many companies are demanding to dissolve the 5/20 rule, it is a positive sign for Air Kerala,” said Non-Resident Keralites Affairs Minister K C Joseph. It is learnt that the present government is taking steps to waive this rule in order to reform the civil aviation sector in the country, the minister added.
Cochin International Airport Limited had launched a fully-owned subsidiary, Air Kerala International Services Ltd, in 2006, to start international flight operations. The company is a public limited one with a paid-up share capital of Rs.1.06 crore. In a feasibility report conducted two years ago for the Air Kerala project, it was found that if domestic operations are launched, the project would incur a loss of Rs.300 crore to the state exchequer within five years.
17/01/15 Pramod Thomas/New Indian Express
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According to 5/20 norms prescribed by the Ministry of Civil Aviation, an airline company should have a minimum experience of five years in domestic operations and a fleet of 20 aircraft required to commence international operations.
“We are hopeful that the government will relax these norms. The original purpose of Air Kerala is to serve NRKs in the Gulf region by protecting them against exploitation. If domestic operations are started, they will not serve the true purpose of the project. Now many companies are demanding to dissolve the 5/20 rule, it is a positive sign for Air Kerala,” said Non-Resident Keralites Affairs Minister K C Joseph. It is learnt that the present government is taking steps to waive this rule in order to reform the civil aviation sector in the country, the minister added.
Cochin International Airport Limited had launched a fully-owned subsidiary, Air Kerala International Services Ltd, in 2006, to start international flight operations. The company is a public limited one with a paid-up share capital of Rs.1.06 crore. In a feasibility report conducted two years ago for the Air Kerala project, it was found that if domestic operations are launched, the project would incur a loss of Rs.300 crore to the state exchequer within five years.
17/01/15 Pramod Thomas/New Indian Express
