Friday, March 04, 2016

Ministerial panel for scrapping 5/20 overseas flying norm

An inter-ministerial panel is understood to have day recommended the scrapping of a controversial norm for allowing domestic carriers to fly abroad amid an escalating tussle between four private Indian carriers and two new Tata Sons-invested airlines.

The 5/20 norm bars airlines from starting overseas operations till they have a fleet of 20 aircraft and five years of domestic flying experience which effectively keeps out Tata's startup airlines Vistara and AirAsia India. A grouping of four private Indian carriers comprising IndiGo, SpiceJet, Jet Airways and GoAir wants the norm to continue.

The committee, chaired by Home Minister Rajnath Singh, met for the second time and discussed various aspects of the proposed new civil aviation policy.

While there has been no official word, sources said the panel is believed to have pitched for scrapping the 5/20 norm and replace it with some other criteria on the issue of allowing international flying for domestic carriers.

The meeting was also attended by various senior ministers including Ashok Gajapathi Raju (Civil Aviation) and Nitin Gadkari (Road and Transport).

The panel's move assumes significance as the established and startup carriers are engaged in bitter war of words over the 5/20 norm, with noted industrialist Ratan Tata pitching for removal of this rule.
04/03/16 PTI/Daily News & Analysis
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