Patel takes on Tata for opposing 5/20 rule

Former Civil Aviation Minister Praful Patel today took on Ratan Tata for accusing older airlines of opposing any change in a rule which permits Indian carriers to fly abroad, saying he was surprised that the top industrialist was advising the government while himself being "an interested party".
"I am surprised to see Mr Tata's tweet that older airlines are lobbying against a change in the 5/20 rule. While he is offering advise to the government to change the (civil aviation) policy, he himself is directly an interested party in the two new carriers," he said.
"It is further surprising to see that he has said that the new airlines were formed in compliance with the prevailing policy. Then what is the need to change the policy mid-way," the senior NCP leader told PTI.

Hitting out at older carriers, Tata had yesterday accused them of lobbying and using "monopolistic pressures" to retain preferential treatment under the controversial 5/20 rule that restricts overseas flying by new airlines.
AirAsia India and Vistara - two airlines operated by the Tatas through joint ventures - are currently ineligible to fly overseas under the 5/20 norm which requires an Indian carrier to have domestic operations for a minimum of five years and a 20-aircraft fleet.
Observing that he believed that "any rule, including 5/20,

is not sacrosanct in an evolving and dynamic sector like aviation", Patel said, "the present government has always maintained that any change of policy will ensure a level- playing field for existing carriers vis-a-vis the new ones.

"The government would not want to appear to favour any particular airline or an interested group."
He also expressed surprise that Air India, which was vehemently opposing any change of the rule, "has now chosen to keep quiet on the subject."
"While old carriers have to continue to maintain flying their fleet of 20 or more aircraft on many uneconomical routes under the Route Dispersal Guidelines (RDGs), the new carriers are seeking a waiver without having to comply with the RDGs or the minimum number of aircraft.
"While understanding their eagerness to fly abroad, why is their reluctance being Indian flag carriers to fly within the country and reach out to remote and far-flung areas?

"An answer to these issues must be provided by the proponents of changing the rule and these must be suitably addressed by the government," Patel said.
"It must be noted that aviation in India has grown in the fastest rate in the world on a year-on-year basis in the last decade largely due to the liberal policies adopted by the government and the advent of many new carriers, as well as the rapid pace of growth of aviation infrastructure over the last ten years," he said.