The civil aviation ministry is taking a re-look at a rule. (Representational Image)
The civil aviation ministry is taking a re-look at a rule that does not allow an Indian airline to fly international until they complete five years of operation and have a fleet of 20 aircraft.
Popularly known as the 5/20 rule, the rationale behind the rule is that an airline can establish its credential in terms of its safety and financial strength only if they operate in the domestic sector for, at least, five years and have a sizeable fleet.
This rule, however, does not apply to foreign carriers who choose to fly to and from India.
"We had the example of Abu Dhabi-based Etihad Airlines flying into India when they were less than a year old. But Indian carriers just couldn't imagine such a scenario," said a former employee of Kingfisher Airlines.
"We are taking a relook at the policy," said a senior official of the ministry. Last week, the government appointed a new civil aviation secretary, Rajeev Nayan Chowbey, in an effort to streamline the functioning of the ministry. Sources in the know say that Mr Chowbey is reviewing the civil aviation sector including giving finishing touches to a new civil aviation policy and are reviewing the 5/20 rule.
If the 5/20 rule is to be scrapped, new domestic airlines like Tata-group promoted airlines Vistara can fly international without having to wait for the mandatory five-year period.
The scrapping the 5/20 rule would encourage new players and start-ups apart from removing a major stumbling block for Indian companies against foreign airlines.