The Centre for Asia Pacific Aviation India, in its recent report on maximising the contribution of aviation to the Indian economy, is the latest to join the long list of agencies calling on the government to reconsider the socalled 5/20 rule.
The rule stipulates that a domestic carrier must have a fleet of 20 aircraft and should have operated in the Indian skies for five years before it becomes eligible for international operations. The Union Cabinet on December 30, 2004, had approved the 5/20 rule. There is no clarity on why the rule was decided on. At that time, bureaucrats told the media that India could ill afford a situation where a new startup airline from the country crashed while on a flight abroad. This would sully the name of Indian aviation. A five-year unblemished track record would ensure more safety on international flights.
The rule immediately allowed Jet Airways and Air Sahara to benefit as it broke the monopoly of Air India and Indian Airlines to operate flights from India to international destinations.
But Air India and Indian Airlines also benefited from the 5/20 rule as they were the sole Indian carriers allowed to operate from India to the Gulf, including to the UAE, Qatar, Oman, Bahrain, Kuwait and Saudi Arabia for another five years. At that time, the Gulf routes were the most profitable ones for the two state-owned airlines. But now two new carriers — AirAsia India and Vistara — are also keen to fly abroad.
Also, since 2004, international airlines have been allowed greater access to India through the exchange of air services bilateral agreements (ASA). By definition, an ASA allows Indian carriers an equal number of flights to the country with which the ASA has been exchanged. But in reality this has not happened.
26/10/15 Ashwini Phadnis/Business Line
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The rule stipulates that a domestic carrier must have a fleet of 20 aircraft and should have operated in the Indian skies for five years before it becomes eligible for international operations. The Union Cabinet on December 30, 2004, had approved the 5/20 rule. There is no clarity on why the rule was decided on. At that time, bureaucrats told the media that India could ill afford a situation where a new startup airline from the country crashed while on a flight abroad. This would sully the name of Indian aviation. A five-year unblemished track record would ensure more safety on international flights.
The rule immediately allowed Jet Airways and Air Sahara to benefit as it broke the monopoly of Air India and Indian Airlines to operate flights from India to international destinations.
But Air India and Indian Airlines also benefited from the 5/20 rule as they were the sole Indian carriers allowed to operate from India to the Gulf, including to the UAE, Qatar, Oman, Bahrain, Kuwait and Saudi Arabia for another five years. At that time, the Gulf routes were the most profitable ones for the two state-owned airlines. But now two new carriers — AirAsia India and Vistara — are also keen to fly abroad.
Also, since 2004, international airlines have been allowed greater access to India through the exchange of air services bilateral agreements (ASA). By definition, an ASA allows Indian carriers an equal number of flights to the country with which the ASA has been exchanged. But in reality this has not happened.
26/10/15 Ashwini Phadnis/Business Line
