The Central government carried forward a new plan in the context of Civil Aviation Policy in which 5/20 rule got partially abolished after much hue and cry leading to even lobbying. The new set rules will help other aviation giants such as Air Asia and Vista to look forward towards international operations. The minimum five requirements will be scrapped out with bringing change to the entire scenario.
The respective airlines who tend to enter international operations amid successful domestic facilities, ought to have a minimum number of 20 flights in prior attendance. The company needs to showcase the core requirement of possessing 20% of its total aeroplanes in its fleet. The service to domestic sector should be appropriate and thus, wishing to fly overseas have minimal mandatory procedures as processed.
According to Minister of State for Civil Aviation, Mahesh Sharma,In place of 5/20, we can make it 3/10 or 3/12. We have also looked at options like 0/10 and 0/20.This is to ensure that any new airlines starting business in India should essentially serve the remote parts of the country.
The aviation industry has always witnessed exponential growth but in varied classes. Not all the aircraft companies have gained monetarily in comparison to others which are flourishing both domestically and internationally all round basis. Previously the government had proposed three-way of consideration. At first,continuing the present norms; secondly a complete abolition from immediate effect and lastly the credit-based system to replace it. Moreover, the minimum requirement of five years along with 20 aircraft in a fleet added credentials for newcomers in the industry specifically towards international routes.
The respective industry is facing a lot of foul cry over the new rule of 5/20. The aviation giants include IndiGo, Spice Jet, Go Air, Jet Airways, and so on. Top executives have complained regarding the unaware declaration of new policy along with the persistent refusal to allow them to present their views about an important policy.
As per Expert advice, “There’s an extreme shortage of experienced commanders in India. Given the likely fleet expansion by Indian carriers and the possible attrition, India needs around 1,000-1,200 commanders over the next 4-5 years. For a start-up airline, it will take at least 3-4 years to ramp up to 20 aircraft. “
In a similar manner, new players Vista and Air Asia has condemned the new policy of 5/20 as it would hurt the interest of the sector. Also, it would sublime the growth prospects of any new airline. The companies possess 11 and 6 aeroplanes respectively. In February, Tata Group Chairman, Ratan Tata, had accused old aircraft carriers of lobbying and using “monopolistic pressures” to retain preferential treatment under the 5/20 rule which sparked a war of words between the older and new airlines.