 "Restrictions on domestic carriers wanting to fly abroad likely to be eased")
Hinting the government would relax the norms in question, Raju said: “I do not see any reason why the 5/20 rule should be there. The government cannot satisfy everyone. We are examining all aspects and will take a decision soon.”
Under current norms, Indian airlines need to have a minimum fleet of 20 aircraft and five years of operational experience (known as the 5/20 rule) to operate international services.
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Air India, Jet Airways, SpiceJet, IndiGo and Go Air have been opposing abolition of the 5/20 norm, saying it will not be fair to extend the privilege to newer ventures, when the older players were made to first prove themselves on domestic skies for five years.
At present, Air India, Jet Airways, SpiceJet and Indigo operate international flights. GoAir would be able to fly abroad upon inducting another aircraft.
The move to abolish the 5/20 rule will benefit Tata-SIA and AirAsia. While AirAsia took to the skies in mid-June this year, Tata-SIA is expected to start commercial operations later this year.
The management of both airline ventures announced by Tata Sons last year have evinced interest in starting international operations from India. Tata Sons, which tied up with Singapore Airline’s in September last year to launch a full-service carrier in India, with an initial investment of $100 million, has said it will operate international flights from India if it gets a government approval.
AirAsia, too, has evinced interest in developing India as a hub for international travel.
Raju was briefing media after a meeting with the chief executive officers (CEOs) of domestic airlines. The meeting was attended by Rahul Bhatia, the promoter of the India’s biggest carrier, IndiGo, and its CEO, Aditya Ghosh; Jet Airways senior vice-president (commercial) Gaurang Shetty; SpiceJet’s chief operating officer Sanjiv Kapoor, Air India’s chairman and managing director Rohit Nandan, Go Air CEO Giorgio De Roni; AirAsia’s chief financial officer Vijay Gopalan and Vistara CEO Phee Teik Yeoh.
Among the topics that came up for discussion during the meeting were the proposed civil aviation policy seeking to enhance regional air connectivity. The draft policy will be put up for discussion in October.
The airlines asked the ministry if aviation turbine fuel could be brought under the declared goods category, so that its tax would come down to four per cent. The carriers also demanded that they be allowed to handle their cargo at airports such as Delhi and Mumbai, which currently use airport staff to do the work. Indian carriers handle their cargo in some airports, including Srinagar.