Home / Business / Money / 5/20 rule for Indian carriers must go: Civil Aviation Min

5/20 rule for Indian carriers must go: Civil Aviation Min

To a query on the controversy over Centre’s plan to develop some airports in the partnership with private firms, Raju said he is neither against privatisation nor public sector. “Personally, I am not against privatisation. Similarly, I am also not against public sector.

5/20 rule for Indian carriers must go: Civil Aviation Min

The ‘5/20 rule’, which mandates a domestic carrier to be five—year—old and have a fleet of 20 aircraft to fly on international routes, should be “done away with” as it is adversely affecting the sector, Civil Aviation Minister Ashok Gajapathi Raju said here on Wednesday.

Raju, who was here to attend ‘Gujarat Aero Conclave-2015, told reporters such rules are pushing back the aviation sector in the country. “I have not seen such rules anywhere in the world.

Such rules are pushing back this sector as well as the economy. Centre government’s job is to promote Indian carriers. Thus, this rule has to go,” the minister said.

To a query on the controversy over Centre’s plan to develop some airports in the partnership with private firms, Raju said he is neither against privatisation nor public sector. “Personally, I am not against privatisation. Similarly, I am also not against public sector.

Both of them are having their own duties to perform. I suggest that we should let them compete with each other for better results,” he said. The current rule, which allows only those Indian carriers to fly on international routes who have completed five years of domestic operations and have a fleet of 20 aircraft, has been slammed by experts and top executives.

AirAsia CEO Tony Fernandes had recently said the ‘5/20 rule’ in India would mean less economic activity as aviation has been a key growth generator for other countries like Singapore and Dubai.

Leave a Reply

x

Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...