Social Icons

twitterfacebooklinkedin

Tuesday 23 February 2016

Ministers Discuss Draft Aviation Policy

A group of ministers on Thursday discussed the draft aviation policy including the existing norm for international flying by domestic carriers and the proposed options at a meeting chaired by Home Minister Rajnath Singh.

The dozen odd-ministers, including Finance Minister Arun Jaitley and Civil Aviation Minister Ashok Gajapathi Raju, held extensive discussions on the norm for international flying by domestic carriers and regional air connectivity, sources said.


"After the detailed discussions on the 5/20 issue, the decision (whether to continue with the existing rule or tweak it or scrap it altogether) has been left to the Civil Aviation Ministry," they said.

The decade-long rule, popularly known as 5/20, allows only those Indian airlines which have a 20-aircraft fleet and have operated in the domestic sector for five years to fly abroad. However, two startup carriers -- Vistara and AirAsia India -- are lobbying for its removal, but the established airlines want the status quo to be maintained.

The draft aviation policy, rolled out last October, contains several provisions like two per cent levy on all air tickets to fund regional connectivity and tax sops, among others, which would have financial implications when the policy comes for implementation.
To Read the News in Full 19/02/16 Business World

No comments:

Post a Comment