The government is reportedly planning to do away with the time frame of the 5/20 civil aviation rule, which means new airlines will not have to wait for five years to operate on international routes. At the same time, the government may insist that airlines reserve 20 percent of their fleet for domestic operations.
Last week, a panel of ministers headed by Home Minister Rajnath Singh met to discuss the draft civil aviation policy, the Economic Times reported. The ministers had reportedly decided that airlines should reserve 20 percent, or 20 aircraft, whichever is higher, of their fleet to fly on domestic routes. For example, if an airline has a fleet of 100 aircraft, then it will have to allocate 20 percent of its total fleet on domestic routes.
Discarding the time-frame of five years requirement will benefit AirAsia India and Vistara airlines, which began operations in 2014 and 2015, respectively. The two new airlines can now operate on international routes provided they have a fleet of at least 20 aircraft. However, Vistara currently has a fleet size of 9 aircraft and AirAsia India has 6 aircraft, the ET report added.
The new rule is seen as a "setback" for older airlines, namely Jet Airways, IndiGo, SpiceJet and GoAir.
09/03/16 Kalyani Pandey/International Business Times
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Last week, a panel of ministers headed by Home Minister Rajnath Singh met to discuss the draft civil aviation policy, the Economic Times reported. The ministers had reportedly decided that airlines should reserve 20 percent, or 20 aircraft, whichever is higher, of their fleet to fly on domestic routes. For example, if an airline has a fleet of 100 aircraft, then it will have to allocate 20 percent of its total fleet on domestic routes.
Discarding the time-frame of five years requirement will benefit AirAsia India and Vistara airlines, which began operations in 2014 and 2015, respectively. The two new airlines can now operate on international routes provided they have a fleet of at least 20 aircraft. However, Vistara currently has a fleet size of 9 aircraft and AirAsia India has 6 aircraft, the ET report added.
The new rule is seen as a "setback" for older airlines, namely Jet Airways, IndiGo, SpiceJet and GoAir.
09/03/16 Kalyani Pandey/International Business Times
