India’s controversial ‘5/20’ rule for airlines is likely to be changed, the country’s Civil Aviation Minister has revealed.
The Economic Times reported Dr Mahesh Sharma has saying that the rule was a “matter of concern” and that a revised set of regulations has already been proposed.
“[We] have sent the revised 5/20 rule for consultation,” Dr Sharma, who is also India’s Tourism Minister, was quoted saying. “It should be back in 10-15 days and then can be taken up by the cabinet anytime.”
The 5/20 rule requires new airlines to operate domestic flights for five years and build a fleet of 20 aircraft before they are permitted to launch international flights. This is unpopular with new airlines such as Vistara and AirAsia India, which are keen to launch international flights. But older airlines, which have already abided by the rule, argue that changing the rules in favour of the start-ups would be unfair.
It is not clear what new measures the revised 5/20 rule would include, but it is likely to be a compromise rather than a scrapping of the rule.
The measures will form part of a new draft aviation policy for India, which is also expected to include issues regarding taxation, foreign investment, regional air connectivity and airport development.