New Delhi: In an indication the government may continue with the 5/20 rule for airlines, the draft civil aviation policy on Friday put forth three options: Retaining it, withdrawing it altogether or withdrawing it with a caveat. The 5/20 rule requires an Indian airline to have a minimum fleet size of 20 aircraft and operational experience of five years before it can commence international operations. The third option proposed is to enforce domestic flying credits (DFC) which require an airline to earn and maintain 300 DFCs annually to start flights to Saarc nations and countries beyond a 5,000 km radius of New Delhi.
While Ajay Singh, CMD, SpiceJet, which is eligible to fly overseas, said the 5/20 rule should not be abolished, Mittu Chandilya, CEO & MD of the much younger AirAsia said the rule should be done away with and said a decision would have sent a clear message. “Nowhere in the world does such a policy exist,” Chandilya said.
The draft policy proposes tax incentives for maintenance, repair and overhaul facilities which have been welcomed as it would help the country earn around Rs 5,000 crore annually from local airlines alone.
31/10/15 Financial Express
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While Ajay Singh, CMD, SpiceJet, which is eligible to fly overseas, said the 5/20 rule should not be abolished, Mittu Chandilya, CEO & MD of the much younger AirAsia said the rule should be done away with and said a decision would have sent a clear message. “Nowhere in the world does such a policy exist,” Chandilya said.
The draft policy proposes tax incentives for maintenance, repair and overhaul facilities which have been welcomed as it would help the country earn around Rs 5,000 crore annually from local airlines alone.
31/10/15 Financial Express
