Norms for overseas flight operation to be modified soon: Minister

Deepak Kumar | The Dollar Business

The government is considering key changes with respect to the existing norms for overseas flight operators and is likely to take measures to modify the provisions. The existing norm, popularly known as 5/20 rule, allows an airline to operate on overseas routes only with a condition that it must have five years of expertise in the domestic segment operating with a fleet of 20 aircraft. “The prime minister and the aviation ministry held a wide discussion and consultation for almost an hour on 5/20, and methodology has been found out to address this. Currently, 5/20 is being reviewed and will be readdressed with certain changes,” Mahesh Sharma, Minister of State for Civil Aviation, Culture and Tourism told reporters at the sidelines of an event in New Delhi on Thursday. India’s major flight operators, including Air India and Jet Airways have long been opposing easing of the current foreign flying norm. Once the 5/20 restriction is removed, new aircraft carriers can compete with the existing operators by offering low prices to attract travellers. Sharma said that the government was in favour of implementing changes to the civil aviation policy. Earlier, a group of airline operators had sent a letter to Prime Minister Narendra Modi, expressing concerns over various issues including the 5/20 rule.  Asked about the issue of predatory pricing by domestic carriers, Sharma said the pricing was a major concern not only for the prime minister but also for several parliamentarians as it was giving a bad name to the industry. In one of the strategic steps, he said, the government could introduce a mechanism through the Directorate General of Civil Aviation (DGCA) to deal with the predatory pricing—a marketing strategy adopted by aviation companies to lure flyers with reduced price.  

August 27, 2015 | 6:35pm IST.