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Amid strong protests from existing airlines, the ministry of civil aviation is considering diluting the restriction on domestic carriers from commencing international operations, instead of outright abolition of the norm, termed the 5/20 rule.
Indian airlines are required to have a minimum fleet of 20 aircraft and five years of operational experience (the 5/20 rule) for starting international services. The minister, Ashok Gajapati Raju, had said in September, “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.”
A senior ministry official said, “All existing airlines, except AirAsia, have protested against abolition of the rule, saying it would put them in great financial distress. They have also said newer airlines should prove their mettle in domestic skies before being permitted to commence international operations.”
Though abolition of the norm is still not off the table, the ministry is considering if the rule should, instead, be diluted. “Newer airlines can demonstrate their operational expertise in domestic skies for a year or two before being granted permission to fly international. And, could be required to have a fleet of (at least) five aircraft. A final decision would be taken shortly,” said the official.
A decision either way would impact Tata Sons’ twin airline ventures — AirAsia India and Vistara. Both have publicly said they would like to fly abroad immediately. AirAsia India already has a plan ready under which it would do so if the government scraps the 5/20 norm. The earlier government had framed a Cabinet note to remove these restrictions on domestic airlines but a decision could not be taken due to declaration of elections in March this year.
The government’s thinking is a relief to incumbent carriers Air India (AI), Jet Airways, SpiceJet, IndiGo and GoAir, all of which have petitioned against the move. AI has made a strong pitch against allowing AirAsia India and Vistara immediate permission to fly abroad, saying it would adversely impact their traffic and financials.
Says a senior executive of a leading private airline, “We waited for five years before we were allowed to fly international. How can new players be given the same permission without proving themselves in domestic skies?”
