The government has kick-started major reforms in the airline sector proposing to overhaul the existing policy on overseas flying and route dispersal guidelines.
While it has suggested replacing the present 5/20 rule with domestic flying credit (DFC) earning scheme, plans are also afoot to improve regional connectivity by putting more profitable routes under ‘category-I’.
Under the changed guidlines, new airlines like the Tata-Singapore Airlines venture Vistara would need to have a fleet of only five aircraft to fly on global routes against the present requirement of minimum 20 aircraft. (This story was first published by this paper on its website www.mydigitalfc.com at 17:30 on Tuesday)
The reforms in the 5/20 rule will allow a start-up airline like Vistara and Air Asia India to earn domestic flying credits (DFCs) by deploying their capacity on domestic routes for qualifying to launch overseas operations. The credits would be calculated on the basis of available seat kilometres (ASKMs) on category-I routes and revenue per kilometres on other routes.
13/01/15 Nirbhay Kumar Jan/mydigitalfc
While it has suggested replacing the present 5/20 rule with domestic flying credit (DFC) earning scheme, plans are also afoot to improve regional connectivity by putting more profitable routes under ‘category-I’.
Under the changed guidlines, new airlines like the Tata-Singapore Airlines venture Vistara would need to have a fleet of only five aircraft to fly on global routes against the present requirement of minimum 20 aircraft. (This story was first published by this paper on its website www.mydigitalfc.com at 17:30 on Tuesday)
The reforms in the 5/20 rule will allow a start-up airline like Vistara and Air Asia India to earn domestic flying credits (DFCs) by deploying their capacity on domestic routes for qualifying to launch overseas operations. The credits would be calculated on the basis of available seat kilometres (ASKMs) on category-I routes and revenue per kilometres on other routes.
13/01/15 Nirbhay Kumar Jan/mydigitalfc
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