New Delhi: The Central Bureau of Investigation (CBI) case of alleged efforts by AirAsia India and its senior officials to manipulate government policies might trigger calls from established carriers for cancellation of Tatas' majority-owned budget airline's licence and sharpen the divide in the domestic aviation space, according to industry experts.
With the CBI registering a case against AirAsia Group CEO Tony Fernandes and other officials for allegedly trying to manipulate government policies through corrupt means to get international licence brings the spot light on the erstwhile '5/20 norm'.
The norm -- which required local airlines to be in operation for at least five years and a minimum fleet of 20 planes in order to start overseas operations -- was done away with in 2016. Now, only the fleet requirement of 20 aircraft is in force, making it easier for new players such as AirAsia India and Vistara to commence international flights, experts said.
Against this backdrop, experts also opined that the CBI case would make things difficult for AirAsia India to start overseas operations. At present, the airline -- a joint venture between Tatas and Malaysia's AirAsia Berhad -- has 18 aircraft and is in the process of firming up international plans.
A senior aviation industry analyst told PTI that the CBI case is definitely a set back for AirAsia India and would have an impact on its proposed international operations also.
"There could be a demand for suspension or cancellations of the airline's licence as well from the Federation of Indian Airlines. which had been opposed to any tinkering in the now amended 5/20 norm," the expert said on condition of anonymity.
The Federation of Indian Airlines (FIA) is a grouping of four established airlines -- Jet Airways, SpiceJet, GoAir and IndiGo. It had opposed amending the 5/20 rule.
FIA could not be immediately contacted for comments on the AirAsia case.
Besides Fernandes, the CBI has named AirAsia India director R Venkataramanan and AirAsia Berhad's former deputy CEO Tharumalingam Kanagalingam, among others, as accused in the case.
30/05/18 PTI/First Post
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With the CBI registering a case against AirAsia Group CEO Tony Fernandes and other officials for allegedly trying to manipulate government policies through corrupt means to get international licence brings the spot light on the erstwhile '5/20 norm'.
The norm -- which required local airlines to be in operation for at least five years and a minimum fleet of 20 planes in order to start overseas operations -- was done away with in 2016. Now, only the fleet requirement of 20 aircraft is in force, making it easier for new players such as AirAsia India and Vistara to commence international flights, experts said.
Against this backdrop, experts also opined that the CBI case would make things difficult for AirAsia India to start overseas operations. At present, the airline -- a joint venture between Tatas and Malaysia's AirAsia Berhad -- has 18 aircraft and is in the process of firming up international plans.
A senior aviation industry analyst told PTI that the CBI case is definitely a set back for AirAsia India and would have an impact on its proposed international operations also.
"There could be a demand for suspension or cancellations of the airline's licence as well from the Federation of Indian Airlines. which had been opposed to any tinkering in the now amended 5/20 norm," the expert said on condition of anonymity.
The Federation of Indian Airlines (FIA) is a grouping of four established airlines -- Jet Airways, SpiceJet, GoAir and IndiGo. It had opposed amending the 5/20 rule.
FIA could not be immediately contacted for comments on the AirAsia case.
Besides Fernandes, the CBI has named AirAsia India director R Venkataramanan and AirAsia Berhad's former deputy CEO Tharumalingam Kanagalingam, among others, as accused in the case.
30/05/18 PTI/First Post
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