Airlines lobby for 5/20 rule
February 18, 2016
The fight between ‘old’ and ‘new’ Indian airlines over the 5/20 rule — which requires
that an Indian carrier must be five
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 managem
management of Jet Airways, IndiGo, SpiceJet and GoAir
recently 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.
What’s the issue?
While, for the already operating domestic airlines, the condition laid down by the Civil
Aviation Ministry is to serve for at least five years and own at least 20 aircrafts before
applying for rights to fly abroad, the new draft Civil Aviation Policy is said to exempt
the new airlines from this obligation which will amount to injustice towards the already
operating airlines.
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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.
Old airlines argue 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.
What is 5/20 rule?
According to the ‘5/20 rule,’ all airlines in India need five years of domestic flying
experience and at least 20 aircrafts in its fleet in order to fly abroad. The rule has been a
subject of heated debate between domestic airline operators. This was proposed
propo
in the
new draft civil aviation policy.
To be looked in UPSC Exams in Paper 3 Topic: infrastructure-airways.
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