Wednesday, September 23, 2015

The 5/20 rule: To abolish or replace?

New Delhi: Even as the Prime Minister’s Office (PMO) has weighed in for the removal of the ‘5/20’ rule (which requires a domestic airline to have a fleet of 20 aircraft and operational experience of five years to start international operations), the civil aviation ministry is deliberating whether there should be a complete abolition or a replacement in lieu of the said eligibility norms for domestic carriers to start international flights. A senior official in the know said, “While the broad mandate is that 5/20 should go, what is being debated on is whether there should be a complete removal of the rule or the abolition should be based on certain conditionalities (which have to be met by Indian airlines).” Four alternates — complete abolition of the 5/20 norm, continuation of the 5/20 norm, replacing 5/20 with a domestic flying credits formula (DFC requires airlines to accruing miles by flying domestic which can be redeemed for overseas flying rights), and an option for domestic airlines to start flying international from the first day on a written assurance that they would meet the DFC threshold within 18-24 months of start of operations — will be put up for public consultation. A final decision will be taken after the public consultation process and in the final civil aviation policy.
23/09/15 Indian Express
To Read the News in full at Source, Click the Headline