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Destination disputes

By Farrokh Jijina · March 21, 2016
"Keeping the national interest in mind, Tata Sons believes that the ‘5/20 rule’ must be abolished if Indian aviation is to achieve its full potential and improve India’s connectivity with the world,” according to a statement dated February 24, 2016 posted on the website of the conglomerate.

The Tata group, an investor in two of India’s newest airlines – Vistara and Air Asia was referring to the clause in India’s aviation policy that bars Indian airlines from flying internationally unless they have completed five years of operation and have 20 aircraft. There are no global parallels to this rule the statement continues, and it "is discriminatory to Indian airlines as foreign airlines that do not meet these criteria are allowed to operate in Indian skies, but Indian airlines cannot enjoy reciprocal rights.”
According to a report dated February 22, 2016 in The Economic Times (ET), chairman emeritus of Tata Sons, Ratan Tata is reported to have stated on his Twitter account that he is saddened by the incumbent airlines lobbying "against the new airlines which have been formed in full compliance with prevailing government policy.” The chairman has not named any airline in his tweet. The ET report states that the older airlines – Jet Airways, Go Air, IndiGo and SpiceJet – "voice their collective opinion and dissent through the Federation of Indian Airlines (FIA).” Executives from the older carriers have rejected Tata’s view, according to the report. Stating that Vistara and Air Asia had undertaken to follow the 5/20 rule when they had obtained their licenses, SpiceJet chairman Ajay Singh told ET that Tata should "urge these airlines to serve India voluntarily before being allowed to fly international.”
Mint, in a report of February 25, 2016 quoting from the Tata Sons statement, said that the (Tata) group is committed to "helping to realize the vision of all forward looking stakeholders to ... bring India and the world closer to one another.” The report also quoted Kapil Kaul, South Asia CEO (chief executive officer) of aviation consulting firm CAPA that there is no merit in their (FIA’s) argument. ... I see the 5/20 rule being abolished.”
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