Tuesday, February 23, 2016

Airline biggies threaten legal action against ministry

New Delhi: Four of the country's biggest private airlines, which together control over 90 per cent of the industry, have threatened to take the government to court if the draft civil aviation policy, which they say is designed to benefit only two new airlines, is finalised without taking their concerns into account.

The airlines - IndiGo, Jet Airways, SpiceJet and GoAir - are mainly concerned about three components of the draft policy, the proposed abolition of the 5/20 rule, which requires an airline to have five years of domestic flying experience and 20 aircraft in its fleet before it can fly to overseas destinations, auctioning of bilateral rights and lifting the foreign ownership cap on domestic airlines above 49 per cent.

Federation of Indian Airlines (FIA), the body which represents the airlines in its submission to the civil aviation ministry, has added a copy from Justice Srikrishna who suggested the changes as violation of constitutional rights. "In my opinion, if the draft policy is implemented in its present form, the querist would be entitled to challenge the same ground of hostile discrimination and infringement of their fundamental right by way of appropriate proceedings before a court," Justice Srikrishna wrote.
23/02/16 Arindam Majumder/Business Standard

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