Government dithers on overseas flying rule

Even after months of intense deliberations with stakeholders, the government has not been able to decide on new rules for Indian carriers to fly abroad. 

The draft aviation policy issued on Friday listed out three options for the same: retain the 5/20 rule under which an airline must be five years old and have 20 planes in its fleet to go overseas; scrap 5/20 with immediate effect; link flying within the country to foreign flying rights  Commodity Market Astrology Tips

"We are seeking comments from the public and stakeholders on the draft policy. We are open to suggestions on this issue and will not limit it to just these three options if we get some good points in comments," said aviation secretary R N Choubey. He, however, added that the final aviation policy - which is expected around the year-end - will make the government's stand clear on this issue. 

Indian airlines are divided over the issue with 'old' carriers like Air India, Jet, IndiGo and SpiceJet against removing the 5/20 norm. The two new Tata JV startups, Vistara and AirAsia India, however, want this rule to go at the earliest so that they can start flying abroad without waiting for five years. AirAsia India chief Mittu Chandilya said: "...it was surprising to see the lack of clarity or progress on the 5/20 rule... It is disappointing that the draft is still where we were on this several months ago. Hope that is addressed at the earliest. Jackpot Stocks Trading Tips

Meanwhile, the draft policy envisages an open sky with SAARC nations and countries beyond 5,000km radius from New Delhi on a reciprocal basis. Having an open sky agreement with a country means that its designated airlines can fly as many flights to India as they want and vice-versa. It also says that foreign airlines of nearby countries (within 5,000km radius) can bid for additional flying rights if Indian carriers have not been able to utilize their share of bilaterals. "They will be allowed to bid for a three-year period and this money will go to the regional connectivity fund," said Choubey. 

Indian airlines find it cheaper to send their planes abroad for servicing and repairs as high taxes here have made maintenance, repair and overhaul (MRO) a stillborn industry in the country. As a result, they give a business of at least $1 billion annually to MROs in the Gulf, Southeast Asia and Sri Lanka. The draft has suggested several tax cuts and duty rebates to reverse this trend and make India the regional hub for MRO business. "Indian carriers are also proposed to be allowed to be free to enter into code share agreements with foreign carriers for any destination in India on a reciprocal basis. No prior approvals will be needed from the aviation ministry for this. The relaxed rule will be reviewed after five years," said Choubey Indian stock market astrology prediction

Airlines are also proposed to be allowed to continue doing their own ground handling at airports. And non-core security at airports is proposed to be thrown open for private agencies that will have ex-servicemen from military and para-military forces on their ranks.