Sunday, March 23, 2014

Scrapping 5/20 rule; why it’s created in the first place

Finally government is abolishing a condition which shouldn’t be there in the first place. This is about the infamous 5/20 rule, where an aviation company registered in India should have 20 planes and complete 5 years of operation before starting overseas operations.

Ironically this rule was not applicable for companies registered abroad. In short one can register a company, which owns a single plane, and still be able to fly to India. If this rule was not there, then deceased Kingfisher Airlines might not have acquired Air Deccan and runs to huge debts. So as many rmsrthe two joint ventures of TATA.

I still don’t know why GoI, is enacting laws which will put Indian companies in a disadvantageous position. This is certainly not for helping passengers. If that was the case, then they should have inducted more flight safety inspectors to DGCA.


1. Five-year ops, 20 aircraft rule may be scrapped - Business Standard

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