Aviation ministry seeks alternative 5/20 policy for airlines to fly abroad

New Delhi: With the old and new airlines taking opposite sides on new eligibility conditions being considered for them to fly abroad, the civil aviation ministry is seeking to stay clear of any controversy a decision could stir up. The ministry is set to ask the Cabinet to decide on a replacement for the current 5/20 policy, which requires an airline to have at least five years of experience in domestic operations and 20 aircraft in its fleet before seeking to spread its wings abroad, a top ministry official said. The plan is to ease this rule.

While new airlines Vistara and AirAsia India demand abolition of the 5/20 rule, other carriers and the Federation of Indian Airlines oppose diluting of the rule as they see such a move to work against interests as they have invested money and time to be eligible to fly on lucrative international routes. This would be one of those rare instances - and possibly a first in aviation - where a nodal ministry has left the decision-making to the Cabinet. According to the norm, a decision is made by the ministry concerned and then sent to the Cabinet for its approval.

An industry insider said asking the Cabinet to decide on 5/20's replacement would discourage airlines from opposing it.
06/08/15 Mihir Mishra/Economic Times

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Categories: Foreign Aug 2015, Indian Aviation- In General Aug 2015