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Sunday 30 August 2015

Removal of 5/20 rule for flying overseas will vitiate level playing field: FIA

New Delhi: Strongly opposing proposed changes in international flying norms for Indian carriers, leading airlines body FIA today said that such a move would "vitiate" the existing level-playing field and only favour new entrants.

The Federation of Indian Airlines (FIA) -- comprising IndiGo, Jet AirwaysBSE 0.31 %, SpiceJet and GoAir -- also said that domestic airline industry operates in a high cost and constrained environment.


In a letter to Prime Minister Narendra Modi today, the FIA has raised several issues concerning the sector and has sought a meeting to discuss the same.
"At a time when the incumbent airlines are committed to high cost domestic networks due to the 5/20 rule and the RDG (Route Dispersal Guidelines), the removal of these rules will vitiate the level playing field that exists in Indian civil aviation," FIA letter signed by IndiGo promoter Rahul Bhatia said.
Read news in full n25/08/15 PTI/Economic Times
Under 5/20 rule, domestic airlines are required to have at least five years operational experience and minimum 20 planes to fly overseas.

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