Airlines lobby for 5/20 rule
Senior officials of leading airlines IndiGo, Jet Airways, SpiceJet and GoAir met Minister of State (PMO) Jitendra Singh on Wednesday demanding level playing field with the foreign and the new airlines in the draft civil aviation policy released last year.
The airlines lobbied for keeping the contentious 5/20 rule for flying abroad, alleged effective control of Indian airlines by their foreign partners and opposed other proposed in the draft aviation policy.
“They sought government’s intervention to incorporate some of their concerns while finalizing the National Civil Aviation Policy (NCAP) being prepared by the Union Ministry of Civil Aviation. They said that this was essential to avoid discrimination against them and provide them an equal level-playing field with the foreign and new Airlines which had started operations in India,” a release issued by Mr. Singh’s office said on Wednesday.
IndiGo President Aditya Ghosh, Jet Airways Senior Vice President Narayan Hariharan, SpiceJet chairman and managing director Ajay Singh and GoAir Managing Director Jeh Wadia submitted a memorandum to the minister during the meeting.
According to the statement, the airlines complained that no country allows substantial ownership and effective control of its airlines “to be taken over by foreign airlines, India has permitted some airlines to operate despite being effectively controlled by their foreign parent.”
The Federation of Indian Airlines, the lobby body for the incumbent airlines, had earlier alleged that”substantial ownership and effective control (SOEC)” norms were being flouted by the foreign partners of new airlines Vistara and AirAsia.
While AirAsia Bhd owns 49 per cent in the Indian carrier, Tata Sons has 41 per cent stake and the rest is with Arun Bhatia’s Telestra Tradeplace. Vistara is the joint venture between Tata Sons (51 per cent) and Singapore Airlines (49 per cent).
The airlines said the government’s move to abolish the 5/20 rule, which requires an airline to have five years of domestic flying experience and 20 aircraft in its fleet before it can fly to overseas destinations, will be an “injustice”.
“While, for the already operating domestic airlines, the condition laid down by the Civil Aviation Ministry is to serve for at least five years and own at least 20 aircrafts before applying for rights to fly abroad, the new policy is said to exempt the new airlines from this obligation which will amount to injustice towards the already operating airlines,” the press statement said citing the memorandum.
The airlines alleged that the new airlines will not be required to serve on underserved and remote routes as is requirement by all the airlines at present under the route dispersal guidelines of the government.”As far as the sector-wise benefits, the already operating Airlines from India would be at disadvantage, because it is they who came forward to operate in sensitive areas including J&K and Northeast,” it said.
The airlines also opposed the civil aviation ministry’s proposal to auction bilateral rights saying no country in the world auctions its sovereign right to others.
The airlines said that as they represent 90 per cent of the aviation industry, “their views deserve to be heard before finalising any policy.” Mr. Singh assured that their concerns will be taken up with the civil aviation ministry, the release added.
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Source:Thehindu
