New Delhi, Aug 27 (IANS): Union Minister Mahesh Sharma on Thursday said a mechanism has been found to either modify or altogether replace the overseas flying eligibility rules for airlines.
Minister of State for Civil Aviation and Tourism Sharma said the issue of overseas flying eligibility norms for airlines, common known as the "5/20" rules came up for discussion during a meeting held two days ago with Prime Minister Narendra Modi along with Civil Aviation Minister Ashok Gajapathi Raju Pusapati.
The minister said that during the meeting held to discuss the new policy for the sector, a methodology was worked out on how to deal with the "5/20" issue which has divided the sector.
"There has been a wide consultation with the Prime Minister on the issue. A methodology was also worked out on how to deal with. The methodology will be made public soon," Sharma said on the sidelines of the "8th International Conference on Indian Civil Aviation & Tourism" here.
"There will be a sea change when the new methodology comes in and the issue is addressed," Sharma said at the conference organised here by the Associated Chambers of Commerce and Industry of India (Assocham).
"The 5/20 rule will be re-addressed with a certain changes or new rules will take their place," Sharma elaborated.
Currently, the norms prescribe that only those carriers that have been in operation for five years and have a fleet of 20 aircraft can fly abroad.
Among the seven main scheduled airlines in the country, only four meet the requirements -- Air India, Jet Airways, SpiceJet and IndiGo. Three others are ineligible including GoAir, Vistara and AirAsia India.
Several aviation research institutions such as the Centre for Asia pacific Aviation have described the 5/20 rule as being damaging, discriminatory and anti-competition, besides preventing carriers from optimal fleet utilisation and expansion.
However, any relaxation of the compliance rule is being stiffly resisted by older airlines which cite huge losses on account of meeting the stringent norms.
The Federation of Indian Airlines (FIA) has also written a letter to the PMO against doing away with the "5/20" rule.
"He (Modi) and his office is aware of the letter... However, we will take the best decision on account of national interests," Sharma added.
Other industry stakeholders claim that the rule has greatly disadvantaged Indian passenger carriers as they have lost out to international competition from the Gulf countries.
Sector based experts also cite another interesting example of the negative impact of the 5/20 compliance rule in the demise of Kingfisher Airlines.
Many analysts attributed the airlines demise to the compliance rule, as Kingfisher bought Air Deccan to leverage its longer history of operations and launch international services almost two years earlier than it would have been able to do on its own right.
However, the decision is cited as the start of the passenger carrier’s financial woes which finally resulted in its bankruptcy.
Earlier, in an exclusive interview with IANS, the Civil Aviation Minister Pusapati said that the decision to impose the 5/20 compliance rule was taken by the union cabinet and that the matter will go back to it for further consideration.