New Delhi: The government is expected to abolish restrictions on domestic airlines to have a minimum fleet of 20 aircraft and five years of operational experience (known as the 5/20 rule) to launch international services.
Sources in the government say that a cabinet note to scrap the 5/20 rule has already been sent by the civil aviation ministry. It is expected to be taken up and cleared in the cabinet meeting on Wednesday.
It would be the last policy change to be effected by the civil aviation ministry before elections are declared later this week.
Under the existing rules, the Indian carriers wanting to fly on international routes need to have a fleet ofat least 20 aircraft and must have operated for at least five years. The move has already come under criticism with Federation of Indian Airlines (FIA) writing to aviation secretary Ashok Lavasa in January :" Considering that all airlines have in the process of fulfilling their obligation incurred substantial losses through domestic operations, it would beunacceptable for the government to now consider revising the policy by theremoval of the 5/20 rule in order to benefit the international airlines' joint ventures which are under consideration and approval.
REad News in full 03/03/14 Business Standard
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