New Delhi: The Centre has put on the backburner the proposal to relax the 5/20 condition for airlines to fly abroad.
The government is worried that it could be accused of favouring new airlines — especially Vistara and AirAsia — if it were to change the rule.
The rule say that domestic carriers must have been in operation for five years and have a fleet of 20 aircraft to be eligible to fly on international routes.
A senior government official told BusinessLine that an onslaught by the Opposition, divisions in the Union Cabinet, and the “social impact” of doing away with the rule were forcing the Modi government to go slow.
Another official told BusinessLine that the Opposition had raised over a dozen questions on the 5/20 rule in Parliament during the last one year.
30/07/15 Business Line
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The government is worried that it could be accused of favouring new airlines — especially Vistara and AirAsia — if it were to change the rule.
The rule say that domestic carriers must have been in operation for five years and have a fleet of 20 aircraft to be eligible to fly on international routes.
A senior government official told BusinessLine that an onslaught by the Opposition, divisions in the Union Cabinet, and the “social impact” of doing away with the rule were forcing the Modi government to go slow.
Another official told BusinessLine that the Opposition had raised over a dozen questions on the 5/20 rule in Parliament during the last one year.
30/07/15 Business Line
