<p>In a historic move, the NDA government on Wednesday cleared the National Civil Aviation Policy (NCAP).<br /><br /></p>.<p>Among 24 other clauses, NCAP replaces 5/20 rule by 0/20 rule. The 5/20 rule mandates that airlines need to fly at least five years domestically and possess 20 aircraft, in order to have international operations. This has been a bone of contention among the many players. <br /><br />While the old players wanted to retain this rule, new players were hopeful that the government would scrap it. Now airlines only need to possess 20 aircraft in order to fly abroad.<br /><br />Vistara has a fleet of 11 aircraft at present, and plans to expand it to 20 by June 2018. AirAsia India, which began operations in June 2014, has been slow in its fleet expansion due to lack of clarity on the international flying norms and possesses eight planes at present.<br /><br />Civil Aviation Minister Ashok Gajapathi Raju said the policy is a ‘game changer’ and that the country’s aviation sector is poised to become the world’s third largest by 2022.<br />Welcoming the decision, AirAsia Group CEO Tony Fernandes tweeted, “Almost an end to vested interests. Power to the people. Well done @narendramodi . You kept your word. Initial reports on India is superb. Of course I think 20 aircraft is to many but thank you @narendramodi. Big day for Indian aviation.” <br /><br />“Though a 0/0 or 0/10 would have been more than welcome, the amendments that have been made to the policy are encouraging. The NCAP gives us clear direction to ramp up our operations in India and grow our business in the domestic segment before we scale our operations to fly international,” said Amar Abrol, CEO, AirAsia India.<br /><br />“We would have preferred, of course, that the 5/20 rule be completely abolished to ensure that Indian aviation achieves its full potential. As an Indian airline, we are committed to our expansion plans in India and are now looking forward to providing connectivity to travellers to/from India promising a new feeling in global skies as well,” said Phee Teik Yoeh, CEO, Vistara.<br /><br />“For us, there is a contradiction here. They say that there is a cap of Rs 2,500 for a one-hour flight. Now the duration of various flights depends on the aircraft manufacturers. There needs to be a bit more clarity on this,” said Shyson Thomas, Managing Director of Air Pegasus, a young regional carrier.<br /><br />IndiGo, Jet Airways and SpiceJet, who were opposing the scrapping of 5/20 rule, declined to comment.<br /><br />“The highly illogical and anti-competition 5/20 rule has been replaced with 0/20, which effectively translates to 3/20, as it will take at least 3-4 years to have a 20 aircraft fleet,” said Amber Dubey, Head of Aerospace and Defence at KPMG India.<br /><br /></p>
<p>In a historic move, the NDA government on Wednesday cleared the National Civil Aviation Policy (NCAP).<br /><br /></p>.<p>Among 24 other clauses, NCAP replaces 5/20 rule by 0/20 rule. The 5/20 rule mandates that airlines need to fly at least five years domestically and possess 20 aircraft, in order to have international operations. This has been a bone of contention among the many players. <br /><br />While the old players wanted to retain this rule, new players were hopeful that the government would scrap it. Now airlines only need to possess 20 aircraft in order to fly abroad.<br /><br />Vistara has a fleet of 11 aircraft at present, and plans to expand it to 20 by June 2018. AirAsia India, which began operations in June 2014, has been slow in its fleet expansion due to lack of clarity on the international flying norms and possesses eight planes at present.<br /><br />Civil Aviation Minister Ashok Gajapathi Raju said the policy is a ‘game changer’ and that the country’s aviation sector is poised to become the world’s third largest by 2022.<br />Welcoming the decision, AirAsia Group CEO Tony Fernandes tweeted, “Almost an end to vested interests. Power to the people. Well done @narendramodi . You kept your word. Initial reports on India is superb. Of course I think 20 aircraft is to many but thank you @narendramodi. Big day for Indian aviation.” <br /><br />“Though a 0/0 or 0/10 would have been more than welcome, the amendments that have been made to the policy are encouraging. The NCAP gives us clear direction to ramp up our operations in India and grow our business in the domestic segment before we scale our operations to fly international,” said Amar Abrol, CEO, AirAsia India.<br /><br />“We would have preferred, of course, that the 5/20 rule be completely abolished to ensure that Indian aviation achieves its full potential. As an Indian airline, we are committed to our expansion plans in India and are now looking forward to providing connectivity to travellers to/from India promising a new feeling in global skies as well,” said Phee Teik Yoeh, CEO, Vistara.<br /><br />“For us, there is a contradiction here. They say that there is a cap of Rs 2,500 for a one-hour flight. Now the duration of various flights depends on the aircraft manufacturers. There needs to be a bit more clarity on this,” said Shyson Thomas, Managing Director of Air Pegasus, a young regional carrier.<br /><br />IndiGo, Jet Airways and SpiceJet, who were opposing the scrapping of 5/20 rule, declined to comment.<br /><br />“The highly illogical and anti-competition 5/20 rule has been replaced with 0/20, which effectively translates to 3/20, as it will take at least 3-4 years to have a 20 aircraft fleet,” said Amber Dubey, Head of Aerospace and Defence at KPMG India.<br /><br /></p>
