New Delhi: India has made it easier for the country's airlines to fly abroad as part of the first set of comprehensive rules governing civil aviation which are designed to boost air travel and economic growth.
Prime Minister Narendra Modi's government presented the national civil aviation policy, which has been years in the making, as a bid to make flying more affordable for India's expanding middle class, to bolster competition and to get more of the country connected.
Under the policy, domestic carriers will no longer have to operate for five years before they can start flying abroad, although they must still have 20 aircraft in their fleets.
"We want airlines to start flying quicker so there is more competition," civil aviation secretary R. N. Choubey told reporters after the cabinet cleared the policy.
Easing the so-called 5/20 rule marks a further step towards liberalising India's aviation market, the world's fastest growing, and is a boost for Tata Group's two recent ventures - Vistara, in partnership with Singapore Airlines, and AirAsia India, a venture with Malaysia's AirAsia Bhd.
The rule, unique to India, had sought to encourage the growth of the nascent domestic aviation industry, but many officials say it now inhibits Indian carriers from increasing their share of international travel.
Incumbents such as Etihad-backed Jet Airways, InterGlobe Aviation's Indigo Airlines and SpiceJet already flying overseas had lobbied hard to keep the rule in place.
To Read the News in Full 15/06/16 Reuters/Business Standard
Prime Minister Narendra Modi's government presented the national civil aviation policy, which has been years in the making, as a bid to make flying more affordable for India's expanding middle class, to bolster competition and to get more of the country connected.
Under the policy, domestic carriers will no longer have to operate for five years before they can start flying abroad, although they must still have 20 aircraft in their fleets.
"We want airlines to start flying quicker so there is more competition," civil aviation secretary R. N. Choubey told reporters after the cabinet cleared the policy.
Easing the so-called 5/20 rule marks a further step towards liberalising India's aviation market, the world's fastest growing, and is a boost for Tata Group's two recent ventures - Vistara, in partnership with Singapore Airlines, and AirAsia India, a venture with Malaysia's AirAsia Bhd.
The rule, unique to India, had sought to encourage the growth of the nascent domestic aviation industry, but many officials say it now inhibits Indian carriers from increasing their share of international travel.
Incumbents such as Etihad-backed Jet Airways, InterGlobe Aviation's Indigo Airlines and SpiceJet already flying overseas had lobbied hard to keep the rule in place.
To Read the News in Full 15/06/16 Reuters/Business Standard
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