New Delhi, June 15: Union Cabinet has accepted the draft of New Civil Aviation Policy. According to the proposed amendments, Ministry of Civil Aviation intends to bring a slew of passenger-friendly measures, apart from giving a boost to startups. Not only has the Ministry capped the amount of prices charged by airlines on short duration flights, it has also cleared a huge hurdle, which prevented startups from escalating their business operations on a global level. The ‘5/20’ rule, which favoured legacy carriers has been replaced by ‘o/20’ rule, in order to provide a fair playing field in the aviation industry. Also Read - Delhi Police Busts Fake Job Racket That Duped People in The Name of Air India & Amassed Lakhs , 3 Arrested
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Airline carriers were provided the permit to conduct flight operations on global level, only if they have 20 aircrafts, along with an experience of 5 years in domestic operation. The rule favoured those airlines which have spent a considerable amount of time in expanding its business operations in India. Also Read - Aviation Lockdown: This is The Amount of Money Airlines Are Losing Out on
However, it was opposed by new airline companies, including AirAsia, Tata Indigo and Vistara. They accused the government of promoting monopoly by imposing such laws. According to AirAsia, the existing policy was “bullish” since it favoured only those who had made a mark in the aviation circles.
However, those opposing the move, including Jet Airways have strongly defended the ‘5/20’ rule, arguing that the air carrier could gain credibility only after completing a stated period time offering domestic services.
How ‘0/20’ rule would change the equation?
As per ‘0/20’ rule, the air carrier would be permitted to ply on international routes even if it has no experience in terms of domestic operations. The only condition before the companies is to have 20 aircrafts in service.
Route Dispersal Guidelines (RDG) also abolished?
RDG has not been abolished. The rule will remain intact. As per the guidelines, aviators need to maintain 10 per cent of their air crafts for commutation in category-II routes, including North Eastern region, Jammu & Kashmir, Andaman & Nicobar Islands and Lakshadweep islands.