 "Incumbent carriers lobbying for preferential treatment: Ratan Tata")
Joining the ongoing debate over the 5/20 norm for local airlines seeking to fly overseas, Tata applauded the Civil Aviation Ministry's proposal to remove the "controversial" rule.
AirAsia India and Vistara -- two airlines operated by the Tatas through joint ventures -- are currently ineligible to operate overseas under the 5/20 norm, under which only those domestic carriers having a minimum of five years' operational experience and at least a fleet of 20 planes can operate international flights.
While AirAsia India is less than two years old with six aircraft, Vistara, which started operations in January 2015, has nine planes.
In recent past, airlines' lobby FIA has expressed concern over substantial ownership and effective control at AirAsia India.
Tatas along with Singapore Airlines run Vistara, while AirAsia is a three-way joint venture between Tata group, Malaysia's AirAsia and Arun Bhatia's Telstra.
"The lobbying for discriminating policies between old and new airlines is reminiscent of the protectionist and monopolistic pressures by vested interests' entities who seem to fear competition, as in a variety of other sectors over the years," Tata said in a strong message posted on his Twitter account.
"These protectionist moves have held back progress in India compared to open economies that have thrived on competition overseas," Tata Group's Chairman Emeritus said in his message titled '5/20 Rule and Vested Interests'.
Tata's remarks come days after a delegation of FIA -- whose members are Jet Airways, SpiceJet, IndiGo and GoAir -- met Minister of State in the Prime Minister's Office Jitendra Singh and submitted a memorandum that touched upon issues like opposition to removal of 5/20 norm, auctioning of additional seats to foreign carriers and substantial ownership and effective control.
Besides, the government is in advanced stages of finalising a new civil aviation policy.
"In the airline industry in India, it is sad to see the incumbent airlines lobbying for protection and preferential treatment for themselves against the new airlines.
"The new airlines have been formed in full compliance with prevailing government policy and providing air transport to Indian citizens in line with the dream of a 'New India' promoted by the new government under (Prime Minister Narendra) Modi's leadership," Tata said.
The Tata group patriarch applauded the Civil Aviation Ministry for considering the removal of 5/20 norm.
"One hopes when the new policy is introduced it will be free of discrimination and protectionism, so that Indian aviation can grow for the benefit of consumer and the common man -- not to serve the interests of select beneficiaries of protectionism," he said.
According to Tata, the call for a new open market economy in India, in line with policies promised by Modi, will "promote growth in an open market based on competitiveness and not from self interest-based protectionism".
In recent months, FIA has claimed that AirAsia India is being controlled by its foreign joint venture partner AirAsia.
FIA (Federation of Indian Airlines) is a grouping of established airlines Jet Airways, SpiceJet, IndiGo and GoAir.
On February 18, a Group of Ministers discussed the draft aviation policy, including the 5/20 norm and the proposed options at a meeting here chaired by Home Minister Rajnath Singh.
At the meeting attended by Finance Minister Arun Jaitley and Civil Aviation Minister Ashok Gajapathi Raju, among others, extensive discussions were held on the norm for international flying by domestic carriers and regional air connectivity, sources had said.
"After detailed discussions on the 5/20 issue, the decision (whether to continue with the existing rule or tweak it or scrap it altogether) has been left to the Civil Aviation Ministry," sources had said.
New carriers -- Vistara and AirAsia India -- are lobbying for its removal, but the established airlines want status quo to be maintained.