It is not a surprise that the national carrier Air India has virtually taken a U-turn on its earlier position of opposing any changes to the 5/20 rules, a stand taken by airlines like Jet Airways, IndiGo, SpiceJet and Go Air. After all, the civil aviation minister and his deputy - Ashok Gajapathy Raju and Mahesh Sharma - have often been quoted as saying that in their personal opinion, the government should do away with the 5/20 rule that pertains to a precedent where domestic carriers are not allowed to fly international routes unless they fly within India for five years and have a fleet of at least 20 aircrafts.
News reports suggest that Air India is of the view that national interest should be the criteria for the government when it decides on either retaining or scrapping the rule to allow Indian carriers to fly overseas. Which means, the national carrier is not opposed to scrapping the rule as was the case till very recently.
This is important because the Union Cabinet is set to deliberate and firm up a national aviation policy soon which includes a decision on whether to carry on the 5/20 rules, scrap it completely so as to allow new entrants like Vistara and Air Asia India to fly abroad or modify the same.
Privately, Air India insiders say they won't oppose if the government decides to scrap the 5/20 rule. Those who have been opposing any changes to the current 5/20 rules include Jet Airways, SpiceJet, IndiGo and Go Air. Lifting restrictions which means more competition from new and well-funded entrants like Vistara and Air Asia India at least on the short-haul international destinations across West and South-East Asia.
19/01/16 Ashish Sinha/BusinessWorld
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News reports suggest that Air India is of the view that national interest should be the criteria for the government when it decides on either retaining or scrapping the rule to allow Indian carriers to fly overseas. Which means, the national carrier is not opposed to scrapping the rule as was the case till very recently.
This is important because the Union Cabinet is set to deliberate and firm up a national aviation policy soon which includes a decision on whether to carry on the 5/20 rules, scrap it completely so as to allow new entrants like Vistara and Air Asia India to fly abroad or modify the same.
Privately, Air India insiders say they won't oppose if the government decides to scrap the 5/20 rule. Those who have been opposing any changes to the current 5/20 rules include Jet Airways, SpiceJet, IndiGo and Go Air. Lifting restrictions which means more competition from new and well-funded entrants like Vistara and Air Asia India at least on the short-haul international destinations across West and South-East Asia.
19/01/16 Ashish Sinha/BusinessWorld
