The NaMo government's decision to remove rules like 5/20 Rule can literally give the ailing Indian aviation industry wings to fly.
Indian airlines, which have already been marred by high input costs and several other restrictive policies, are eagerly looking forward to the removal of this particular rule as well as other norms such as the First Right of Refusal to Air India regarding international routes.
"There is a need to replace the 5/20 Rule in order to equip Indian commercial airline operators with long term financial security and international quality standards. Revisiting this rule will provide incentive for new players to enter the market due to advent of opportunity for enhancing revenues, yields and ultimately, profits," said DS Rawat, general secretary of industry body ASSOCHAM.
Besides, elimination of the rule of First Right of Refusal to Air India will encourage a fair play to all the players in the sector. Industry experts also expect this move to encourage private players to pro-actively participate in the industry.
23/09/15 Purba Das/Business Insider
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Indian airlines, which have already been marred by high input costs and several other restrictive policies, are eagerly looking forward to the removal of this particular rule as well as other norms such as the First Right of Refusal to Air India regarding international routes.
"There is a need to replace the 5/20 Rule in order to equip Indian commercial airline operators with long term financial security and international quality standards. Revisiting this rule will provide incentive for new players to enter the market due to advent of opportunity for enhancing revenues, yields and ultimately, profits," said DS Rawat, general secretary of industry body ASSOCHAM.
Besides, elimination of the rule of First Right of Refusal to Air India will encourage a fair play to all the players in the sector. Industry experts also expect this move to encourage private players to pro-actively participate in the industry.
23/09/15 Purba Das/Business Insider
