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Thursday, 02 April, 2015, 10 : 30 AM [IST]

5/20 rule for Indian carriers must go: Union Civil Aviation Minister

According to a report by PTI, the '5/20 rule', which mandates a domestic carrier to be five years old and have a fleet of 20 aircraft to fly on international routes, should be "done away with" as it is adversely affecting the sector, Ashok Gajapathi Raju Pusapati, Minister for Civil Aviation, Government of India, said yesterday. He was in Ahmedabad to attend 'Gujarat Aero Conclave-2015’. According to him, such rules are pushing back the aviation sector in the country.

"I have not seen such rules anywhere in the world. Such rules are pushing back this sector as well as the economy. The central government's job is to promote Indian carriers. Thus, this rule has to go," the Minister said.

To a query on the controversy over the Centre's plan to develop some airports in partnership with private firms, Pusapati said that he is not against privatisation or the public sector.

"Personally, I am not against privatisation. Similarly, I am also not against public sector. Both of them are having their own duties to perform. I suggest that we let them compete with each other for better results," he explained.

The current rule, which allows only those Indian carriers to fly on international routes who have completed five years of domestic operations and have a fleet of 20 aircraft, has been slammed by experts and top executives.

Tony Fernandes, CEO, AirAsia, had recently said the '5/20 rule' in India would mean less economic activity as aviation has been a key growth generator for other countries like Singapore and Dubai. (Source: PTI)
 
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