Cabinet likely to clear new Civil Aviation Policy, 5/20 rule this month

QUICK PILL

• Under the \'5/20 rule\', only those airlines having at least five years of domestic flying experience and a minimum of 20 aircrafts are allowed to fly overseas.
• According to the Secretary of Civil Aviation, the ministry has already done a couple of rounds of inter-ministerial consultations and they will now be in a position to take the matter to the Cabinet this month.

With a growing degree of "consensus" among various stakeholders on issues in the draft Civil Aviation Policy - including norms for international flying by domestic airlines - the policy is likely to be approved by the Cabinet this month, a top official said on Friday.

Speaking to reporters on the sidelines of the 29th anniversary of Bureau of Civil Aviation Security (BCAS) - the country's nodal aviation security agency - Civil Aviation Secretary RN Choubey said:

"(As far as) 5/20 and other issues raised in the draft Civil Aviation Policy (are concerned), a degree of consensus has already emerged."

Under the '5/20 rule', only those airlines having at least five years of domestic flying experience and a minimum of 20 aircrafts are allowed to fly overseas.

Choubey said that his ministry would take the matter to the Cabinet this month, adding, "the (new aviation) policy, which will also clear the position on 5/20, will be approved this month."

The draft policy was unveiled in October 2015 and since then, the government has held extensive consultations with various stakeholders - including ministries, airlines,airport operators and ground handling agencies. "We have already done a couple of rounds of inter-ministerial consultations. We will now be in a position to take the matter to the Cabinet this month," Choubey said.

The policy was expected to be finalised in the previous financial year as certain proposals were to be implemented from 1 April, 2016.

While startup carriers Vistara and Air Asia India are demanding that the 5/20 rule be done away with, the grouping of four private Indian carriers comprising IndiGo, SpiceJet, Jet Airways and GoAir wants to retain the rule.

The proposed policy seeks to boost to the Indian aviation sector, which has high growth potential, and strengthens regional connectivity. It has suggested tax incentives for airlines, maintenance and repair works of aircraft besides mooting a 2 per cent levy on all air tickets to fund regional connectivity scheme.

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