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Wednesday 24 February 2016

Ratan Tata says old airlines 'lobbying for protection'; SpiceJet chief hits back

New Delhi:  Tata Group chairman emeritus Ratan Tata has lashed out at old Indian carriers' bid to ensure that the 5/20 rule — which makes it mandatory for desi airlines to be five year old and have a fleet of at least 20 planes to go overseas — is not done away with.
"In the airline industry in India it is sad to see the incumbent airlines lobbying for protection and preferential treatment for themselves against the new airlines which have been formed in full compliance with prevailing government policy and providing air transport to Indian citizens in line with the dream of a 'New India' promoted by the new government under Modi's leadership," said Ratan Tata in an open letter titled "5/20 rule and vested interests" which he tweeted on Sunday.

The Tata Group has in last two years launched as many airlines in joint venture with Singapore Airlines (SIA) and AirAsia which want to start flying abroad without waiting for five years like IndiGo and SpiceJet. These two airlines — Vistara and AirAsia India, along with aviation minister Ashok Gajapathi Raju, want 5/20 to be scrapped in the NDA's hugely-delayed aviation policy.
But four Indian airlines — Jet Airways, IndiGo, SpiceJet and GoAir — have come together under the banner of Federation of Indian Airlines (FIA) to oppose that move and are lobbying hard for that. Tata's letter has triggered a war of words with SpiceJet promoter Ajay Singh.
"All of us were asked to serve our great country before we got profitable rights to fly abroad. What is wrong if these two foreign-controlled airlines are also asked to serve India before being allowed to fly international? Mr Tata, whom we respect greatly, should in fact urge these airlines in which his group is a shareholder, to serve India willingly before being allowed to fly international," Ajay Singh said. This fight is unlikely to end in a hurry.
To Read the News in Full 21/02/16 Saurabh Sinha/Times of India
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