Tag: ‘5/20’ norms for domestic airlines.

Cabinet Approves National Civil Aviation Policy Minus Norm Of 20

[New Delhi]Cabinet Approves National Civil Aviation Policy Minus Norm Of 20
The much-awaited national civil aviation policy that seeks to strengthen regional connectivity and tap the sector’s high growth potential was today cleared by the Union Cabinet.
Civil Aviation Minister Ashok Gajapathi Raju said the policy is a “game changer” and that the country’s aviation sector is poised to become the world’s third largest by 2022.
The policy has been finalised after nearly eight months since the Ministry came out with the revised draft in October 2015 and follows many rounds of deliberations with stakeholders. The NDA government had for the first time unveiled the policy draft in November 2014.
Raju said in a tweet.
India would be the third largest civil aviation market by 2022. “To achieve this, we need right intentions, vision, planning and execution,” he added.
.Initially, the policy was expected to be finalised in the last financial year as certain proposals were to be in effect from April 1, 2016.
However, the government had been moving back and forth on the policy seeking to sort out the differences among stakeholders including on 5/20 norm.Govt postponed Condition of 20 for international flights for future
In the run-up to the framing of policy, various provisions including the issue of international flying norm witnessed extensive debate, with legacy carriers opposing any changes to the rule, while start-up airlines frantically demanding its scrapping.
Significantly, AirAsia Berhad –a key stakeholder in AirAsia India had recently said that it was confident of the Government scrapping the norm.
“…the ruling (5/20 norm) is expected to be revoked along with a new National Civil Aviation Policy (NCAP) to be introduced in the near future, given massive lobbying against it,” AirAsia Berhad said in its 2015 annual report released yesterday

Centre ,Taking U Turn, Denies Capping of Airfares

[New Delhi], Centre ,Taking U Turn, Denies Capping of Airfares
Civil Aviation Minister Ashok Gajapathi Raju Exhibiting this U Turn, said restricting the airfares will not make good business sense as it could also jeopardise the government’s regional connectivity plan as such a move may discourage airlines to fly on non-profitable routes.
He, however, said a slew of passenger-centric measures including “time-bound” grievance redressal mechanism would be unveiled very soon, emphasising that India’s civil aviation market was the fastest growing in domestic passenger travel demand.
It is expected that the government was going to announce steps to rationalise the ticket cancellation charges and they are likely to be capped around the base fare, as against current exorbitant fees, as part of passenger-friendly initiatives.
The Minister said at least 32 airports built by Airport Authority of India at a cost of at least Rs 3,000 crore over the years were lying “unconnected” and putting any restriction on market-driven fares may jeopardize government’s plan to start flight services to those airports.
Holding that putting a cap on airfares may have an adverse impact on growth of aviation sector, Raju said his Ministry keeps a “continuous tab” on price movements to ensure that the rates are under check.
His comments come at a time when the government is discussing ways to address issues related to steep fluctuations in airfares, especially during peak seasons and natural calamities.
Minister of State for Civil Aviation Mahesh Sharma last month had announced that capping of fares will be announced soon.
India’s domestic aviation market has clocked a growth rate of 22%in the last one year, the highest for any country. .

Modi Govt to Soon Announce Mechanism To Cap Airfares

[New Delhi]Modi Govt to Soon Announce Policy to Cap Airfares
Airfares usually go up by around 40-50 per cent during the festive seasons and vacations. The airlines had faced severe criticism when the fares had even touched as high as Rs 50,000 for a one way ticket between Bengaluru and Delhi during the Chennai floods in December last year.
The fares had gone up significantly during the recent Jat agitation as well.
Central Government is now finally going to announce a mechanism soon to curb high airfares and unveil a new civil aviation policy to address all major issues affecting the sector.
The policy may be placed before the cabinet within two weeks.
As per Sources ,Prime Minister Narendra Modi is very keen to have an upper cap on the ticket price and government would announce the measures while taking views of the airlines also
Civil Aviation Minister For State Mahesh Sharma told Agency in an interview.
Aviation regulator DGCA had last week said that discussions need to be held with airlines before any decision on fixing upper cap on ticket prices.
On the civil aviation policy, which is hanging fire since for a long time, the Minister said majority of the issues were sorted out.
New Aviation Policy policy may address all the pending issues including the
5/20 norm,
regional connectivity scheme and the
ground handling issues.
Under 5/20 norm, a domestic airline cannot fly overseas unless it has completed five years of operation on local routes and has a fleet of 20 aircraft.

At Last ,Center Accepts 5/20 Rule ‘Anarchic’ And Decides to Change

[New Delhi] At Last Center Accepts 5/20 Rule ‘Anarchic Now Decides to Change.It May Clear The Way For New Airlines To Fly Abroad .Present rule entails that an airline can fly to international destinations only if it has served within the country for five years and has a 20-aircraft fleet.
Terming the 5/20 rule which allows Indian carriers to fly abroad as “anarchic”, Civil Aviation Minister Ashok Gajapathi Raju today said he was trying to change it so that new airlines can connect with foreign destinations.
Raju said in Lok Sabha the government wants more Indian airlines to fly to foreign destinations but as long as the 5/20 rule is not changed, they cannot fly abroad.
Hitting At Previous Govt Raju Said It is a fact that 5/20 rule came from a particular Cabinet at a particular point of time. To my mind, it is an anarchic type of thing. It prevents the Indian registered airlines to function.
But as long as that rule is there, we have to follow it.”I am trying to change the rule and if I have my way, it will happen,” he said during Question Hour.
Raju’s reply came when Congress member Shashi Tharoor said the Kerala government had tried to set up a state airline called ‘Air Kerala’ to cater to the vast amount of traffic of Keralites going to Gulf countries since private carriers were exploitative, but could not do so due to the 5/20 rule.
“It is our duty to see that people are not exploited. In fact, airfares before 1994 were controlled by the Government.
The Minister said,.Airlines before that had to apply and take government approval. In 1994, the Act was repealed by Parliament,”
BJP member R K Singh too joined Tharoor saying private airlines often exploit passengers taking emergency situation which government must check.
“Whenever there is an emergency situation, the airlines hike the fare and exploit people. This is nothing but exploitation and if the government keeps watching this happening then what is the use of having a government,”
The Minister said government has analysed the entire issue and found that the high side of the fares in the total ticketing is about less than two per cent.
“So, we realise that the prices of tickets have come down in most routes, particularly where the competition is more.
He said capacities and growth in the country have been going up. If the growth is stifled, the problem will not be resolved.
Minister Said “With regard to emergencies like Chennai floods, Srinagar floods or the Jat agitation and all that, we do see these things coming up and we give advisories to the airlines and some of the airlines do respond,”

DGCA May Allow Local Airlines To Import 18 Years Old Aircraft Also

[New Delhi] Indian Aviation Watchdog DGCA May Allow Domestic Airlines To Import 18 Years Old Aircraft Also
Domestic airlines might soon be allowed to import aircraft that are up to 18 years old.New Aviation Policy Regarding ‘5/20’ Norms Is Also Under Progress. ,
Currently, local carriers are not allowed to import aircraft that are more than 15 years old.
The proposal to relax the aircraft import requirements comes at a time when the government is in the final stages of preparing the new aviation policy that would focus on improving regional air connectivity, among other areas.
The watchdog has proposed that pressurized aircraft that are to be imported should not have “completed 18 years of age or 50 % of operating cycle”.
A pressurized aircraft is one which is equipped to handle cabin pressure at an altitude of above 10,000 feet.
Besides, such aircraft should not have completed “15 years of age or 75 per cent of design economic life or 45,000 pressurisation cycle”.These norms, once in place, would be applicable for use in scheduled, non-scheduled and general aviation operations.

Indian Civil Aviation Policy May Take New Shape in a Month

[New Delhi]Aviation Policy May Take New Shape in a Month
Government expects to finalise the much-awaited new aviation policy and revised international flying norms for domestic carriers within a month.
Though the consultation process with the stakeholders on the twin subjects are almost complete, the ministry might look at having some more discussions in this regard, a senior Civil Aviation Ministry official said today.
Besides, formulating a new civil aviation policy, the government is in the process of doing away with the ‘5/20’ norms for domestic airlines.
Under the norms, only carriers having been in operation for at least five years and with a fleet of at least 20 aircraft are allowed to fly on international routes.
However, the proposed norms have come under criticism from both the established as well the start-up carriers with the latter having apprehensions about regional connectivity conditions.
The incumbent Rohit Nandan’s tenure expires in August and the government has to take a decision for new Officer before that.