Saturday, September 19, 2015

Vistara and AirAsia must be on cloud nine!

It is time for celebration for Vistara and AirAsia India as they may soon be able to fly international flights. Prime Minister Narendra Modi has favoured the scrapping of the 5/20 eligibility rule that does not allow Indian carriers to fly overseas.

According to the rule, they have to complete five years of domestic service and have a fleet of 20 aircraft before they could fly overseas.

During a meeting on August 25, Modi made his views clear while discussing the new civil aviation policy, which is being formulated. Removal of the 5/20 rule is part of the proposals. The meeting was also attended by ministers of civil aviation, finance and skill development & entrepreneurship, as well as top officials of the aviation ministry.

Modi said in the meeting that the rule should be scrapped and no alternative should be introduced, said an official who attended the meeting.

"If the rule is stifling the growth of our carriers, the rule should completely be abolished and not replaced. What is the need to replace a rule with something when the rule itself is not pro-growth," the official said, quoting Modi.
18/09/15 Business Insider
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