Government has unveiled a new civil aviation policy to boost domestic airline sector. Government has abolished 5/20 rule in the new civil aviation policy. Abolition of 5/20 rule is a shot in the arm for new carriers like Vistara and Air Asia who wants to start their international operations but were not able due to 5/20 rule.
5/20 rule says Airlines Carrier should have five years of domestic operations and should have 20 aircrafts in it’s fleet to start it’s international operations.
In new Civil Aviation policy 5/20 rule has been replaced with 0/20 rule. It means if an Airline company have 20 aircrafts in it’s fleet they can start international operations.
So Airline companies having 0 years of domestic experience but having at least 20 aircrafts or 20% of their total fleet of aircraft, whichever is higher, allocated for domestic sector can start their international operations without any hindrance.
Older airlines like IndiGo, Spice Jet, Go Air and Jet Airways are not happy over the decision to abolish the 5/20 rule.
“This is to ensure that any new airlines starting business in India should essentially serve the remote parts of the country,” a ministry official said.