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Govt. response to Tata’s complaint; will take a call on 5/20 rule at right time

On Monday 22nd Feb 2016, after the business tycoon, Ratan Tata, accused older airlines of lobbying and allowing overseas flights by Indian carriers; Union minister, Mahesh Sharma, responded that  the administration would take a call on 5/20 norm issues at the right time.

Mahesh Sharma Union Minister
Mahesh Sharma Union Minister

Let’s get back to the problem: A few days back, the chairman of the TATA group pointed out, that established carriers were using “monopolistic pressures” to retain “preferential treatment” under the 5/20 rule, which permits an Indian carrier to fly overseas only after it operates domestically for five years and possesses a 20-aircraft fleet. Therefore, AirAsia India and Vistara – two airlines operated by the Tata’s through joint ventures, are currently unqualified to operate abroad under the 5/20 norm.

Mr. Tata said :

“The lobbying for discriminating policies between old and new airlines is reminiscent of protectionist and monopolistic pressures by vested interests’ entities who seem to fear competition, as in a variety of other sectors over the years”

“One hopes when the new policy is introduced it will be free of discrimination and protectionism, so that Indian aviation can grow for the benefit of consumer and the common man , not to serve the interests of select beneficiaries of protectionism”

In response the minister, Mr. Mahesh Sharma, added that he welcomed the suggestions made by Mr.Tata:

“We salute him (Ratan Tata). As an Indian citizen, he has given a suggestion. We welcome his suggestion. We will try to take a call on his suggestion”

“We as a government are here to address and take call on such issues which come from various stakeholders and well wishers. The government will take a call at the right time”

Air Asia India
Air Asia India

As per the information provided by sources, the establishment is in advanced stages of completing the new civil aviation policy, which also includes taking a call on the 5/20 rule. 

But several older airlines including SpiceJet, Jet Airways, IndiGo and GoAir are ferociously opposing any move to scrap the 5/20 norm, Tata had applauded the proposal made by the civil aviation ministry to remove the allegedly “controversial” rule.

Source: Economic Times