BANGALORE: The Civil Aviation Ministry is all set to discuss on removing the existing 5/20 rule, that airlines need to meet to fly overseas. The committee will be looking forward for finding a way out in order to maintain a certain percentage of flights in the domestic sector. But according to the recent scenario Vistara, AirAsia India and some other companies may not get all the freedom to decide where to deploy their capacity, reports Mihir Mishra from Economic Times.
The Ministry officials stated that, "We seem to have agreed on removing 5/20 but there is a fear that this might bring a situation where the airlines will shift focus completely on international operations," the official told ET on condition of anonymity. "We are discussing a model, wherein we could ask the airlines to fly at least 25 per cent of their total capacity in the domestic sector posts the removal of 5/20."
According to the 5/20 rule the airlines should have a five years of domestic experience as well as 20 aircrafts to qualify for the international services. The Ministry has been discussing about the removal of the rule from almost a year. The discussion is indented to make sure that there won’t be cut down in the percentage of domestic flights. Government also thinks that removal of the rule will also attract more investors to the industry.
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