Chidambaram to support doing away with 5/20 aviation rule

Finance Minister P Chidambaram today said he will support Civil Aviation Minister Ajit Singh in throwing out a rule that debars Indian carriers from flying abroad unless they complete five years of service.
"If he (Ajit Singh) brings a paper to the Cabinet to throw out that rule (known as 5/20), I will support it strongly," Chidambaram told a Washington audience.
He was responding to a question on this provision, which Centre for Asia Pacific Aviation (CAPA) in a recent report described as one of the "most damaging and discriminatory regulations."
The aviation advisory and research firm in its report had argued that the finances of several Indian carriers would have been stronger if they were allowed to launch service on international routes earlier.

A similar view was expressed by Ajit Singh this past week.
"In the last week, the Minister for Civil Aviation, Ajit Singh, made a statement that he is reviewing the 5/20 rule. According to him, it is an absurd rule. That is what he said," Chidambaram said in response to a question at the Carnegie Endowment for International Peace, a prestigious US-think tank.
Singh had recently said that he is planning to go to the Cabinet to review the 5-20 rule, which makes it mandatory for an Indian airline to complete five years and have a fleet of at least 20 aircraft to start international flying.