The Cabinet on Wednesday approved a partial abolition of the 5/20 rule, which will enable new carriers like Vistara and Air Asia to start international operations sooner.
According to the Civil Aviation Policy, released by the ministry on Wednesday, the government has decided to scrap a requirement that mandated airlines to have five years of domestic operations to be eligible to fly overseas. However, an airline will have to allocate 20 aircraft or 20% of their total fleet of aircraft, whichever is higher, to the domestic sector if they wish to fly overseas. This effectively means a carrier must have a minimum 20 aircraft in its domestic fleet.
"This is to ensure that any new airlines starting a business in India should essentially serve the remote parts of the country," a ministry official said.
New aviation policy announced
By IndianMandarins - 2016-06-15 21:39:27
The Cabinet on Wednesday approved a partial abolition of the 5/20 rule, which will enable new carriers like Vistara and Air Asia to start international operations sooner.
According to the Civil Aviation Policy, released by the ministry on Wednesday, the government has decided to scrap a requirement that mandated airlines to have five years of domestic operations to be eligible to fly overseas. However, an airline will have to allocate 20 aircraft or 20% of their total fleet of aircraft, whichever is higher, to the domestic sector if they wish to fly overseas. This effectively means a carrier must have a minimum 20 aircraft in its domestic fleet.
"This is to ensure that any new airlines starting a business in India should essentially serve the remote parts of the country," a ministry official said.
