Wednesday, February 17, 2016

Old versus new airlines fight over 5/20 rule reaches PMO

New Delhi: The fight between 'old' and 'new' Indian airlines over the 5/20 rule — which requires that a desi carrier must be five-year old and have 20 planes in its fleet to go overseas — has now reached the Prime Minister's Office (PMO). Promoters and top management of Jet Airways, IndiGo, SpiceJet and GoAir met minister of state for PMO, Jitendra Singh, and sought a "level-playing field with the foreign and new Airlines which had started operations in India".
The 'old' airlines want the 5/20 rule to stay while the two new airlines launched by Tata Group in joint ventures with Singapore Airlines (SIA) and AirAsia want this to be abolished. Union aviation minister Ashok Gajapathi Raju also wants 5/20 to be done away with and now the old airlines have taken to the issue to the PMO.
Meeting under the banner of Federation of Indian Airlines (FIA), IndiGo promoter Rahul Bhatia and president Aditya Ghosh, SpiceJet and GoAir promoters Ajay Singh and Jeh Wadia, respectively and senior management of Jet Airways told the minister that exempting the new airlines from 5/20 will "amount to injustice towards the already operating airlines". They said that this was essential to avoid discrimination against them and provide a level-playing field with the foreign and new airlines that have started operations in India.
17/02/16 Saurabh Sinha/Times of India
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