Industry nod sought to scrap 5X20 rule

The Civil Aviation Ministry is convening a meeting next week with airlines to discuss the scrapping of a rule that requires operators to have completed five years of operations and 20 planes in its fleet before they can fly abroad. 

The meeting, likely to be held next Thursday, is to gauge the response of the airlines, including the newbies, Vistara and AirAsia India. The two new airlines will be the beneficiaries if the rule is scrapped, but the existing airlines are likely to oppose an easy way out for them.

The ministry will seek the opinion of the industry on the scrapping rule, which is part of the draft aviation policy. 

Sources said that the Ministry wants to discuss its alternatives to allowing airlines to carry out foreign operations in the meeting.

As per the proposal, airlines seeking permission to start foreign operations will have to first provide connectivity in under-served and un-served destinations. The airlines will be asked to give their views on if they have gained sufficient credits by operating services in domestic routes and have a fleet of five aircraft.The airline must have a minimum of 200 crore domestic flying credits for international operations. The airline could also buy around 20 per cent of these credits.

This could help an airline start operations in a year after it starts its services. This policy will also be invoked for allotting new international routes to the existing airlines, which already have international operations.