STOCK MARKET BSE NSE

5/20 Rule Set to be Tweaked for Domestic Carriers: Mahesh Sharma

The decade-old norm for international operations by the domestic carriers, popularly known as 5/20 rule, is set to be tweaked.

Published: 15th April 2016 11:34 PM  |   Last Updated: 15th April 2016 11:34 PM   |  A+A-

Mahesh Sharma PTI

Union Culture Minister Mahesh Sharma | File PTI

By PTI

MUMBAI: Indicating that the decade-old norm for international operations by the domestic carriers, popularly known as 5/20 rule, is set to be tweaked, Union Minister Mahesh Sharma today expressed hope that the Union Cabinet will give its nod to the revised norm by this month.

The rule was a "matter of concern," and has been addressed (appropriately), Sharma, who is Minister of State for Civil Aviation, said at an event here.

"(We) have sent the revised 5/20 rule for consultation... it should be back in 10-15 days and then can be taken up by the cabinet anytime," he told reporters.

The existing regulation requires an Indian carrier to have a minimum five years of domestic flying experience and a fleet of at least 20 planes to fly overseas.

The issue of 5/20 international flying norm has witnessed extensive debates with legacy carriers opposing any changes to the rule, while start-up airlines --AirAsia India and Vistara -- are against continuing with the requirement.

Sharma also said Civil Aviation Ministry has already sent the draft aviation policy for inter-ministerial consultation, adding that "it should be taken up by the cabinet anytime."

All issues relating to the aviation sector will be addressed in new policy, he added.

Measures suggested in the draft policy, which was unveiled last October, seek to give a boost to the Indian aviation sector, which has a high growth potential, and strengthen regional connectivity.

It has suggested tax incentives for airlines, maintenance and repair works of aircraft besides mooting 2 per cent levy on all air tickets to fund regional connectivity scheme.

There are other significant proposals such as increasing FDI limit for foreign airlines, setting up of no-frills airports and providing viability gap funding for airlines to bolster regional air connectivity.

Sharma said that the Government was open to re-look at taxations on jet fuel for the states participating in the regional connectivity scheme.

"We have already proposed a haircut to bring taxation to 1 per cent on the regional connectivity scheme," he said.

On the issue of fixing thresholds for economy class air fares, Sharma said that the "price capping" was being looked at through a consensus method.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp