“This (5/20 rule) is obviously something that is pulling Indians down…Does it have any scientific meaning?” Mr. Raju told reporters at the sidelines of an aviation conference here. The minister denied allegations of the incumbent private airlines that ownership and effective control norms were being flouted by foreign partners of Indian carriers. According to the ‘5/20 rule,’ all airlines in India need five years of domestic flying experience and at least 20 aircrafts in its fleet in order to fly abroad. The rule has been a subject of heated debate between domestic airline operators.
While the private airlines which are allowed to fly abroad — IndiGo, Jet Airways, SpiceJet — have all opposed the proposal to abolish the rule, new airlines Vistara and AirAsia India are in strong favour of relaxing the norm. However, the Civil Aviation Ministry is still undecided on whether to keep the 5/20 rule, abolish it or replace it with some other regulation in the civil aviation policy which is yet to go to the Union Cabinet.
Recently, members of the Federation of India Airlines, which represents the private incumbent airlines, met the Union civil aviation ministry officials and registered their opposition to relax the 5/20 rule. “Basically, they had rough time in the past. Their books are not good... When the new players come in, their books will be clear. So, we will be at a disadvantage,” Mr. Raju said stating the concerns flagged by the airlines. In the meeting held early this week, it is learnt that the airlines have alleged that foreign partners of Indian carriers are flouting “substantial ownership and effective control (SOEC)” norms and said the 5/20 rule should remain till SOEC issues are addressed by the government.
However, the civil aviation minister said it is not “a correct argument” and that Union finance ministry looks after effective control norms.
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