Aviation ministry to finalise cabinet note on international flying norms by month-end

The civil aviation ministry is yet to take a call on introducing domestic flying credits for airlines and easing norms for start up airlines to launch international services. On Thursday a media report said that civil aviation ministry was planning to scrap its proposal for introducing the domestic flying credits. The report said the proposal was being reviewed and is likely to be junked. However civil aviation secretary R N Choubey told Business Standard the ministry was yet to take a final decision on the issue. He said more consultations will be held on the issue. A cabinet note is yet to be finalised and it will be done by month-end, he said.

A few months ago the civil aviation ministry proposed introduction of domestic flying credits as an alternative to the existing route dispersal guidelines and relax international flying norms. The existing guidelines require airlines to deploy certain percentage of capacity on routes to and within Jammu and Kashmir and North East states. The proposed norms would require airlines to earn credits from domestic services in order to be eligible for international operations.

But the ministry has been unable to take a decision on the issue because of pressure from competing lobbies. While start up airlines including AirAsia and Vistara favour relaxation of international flying norms, established airlines are opposed to the idea.

Analysts too are opposing the credit-based model which seeks to replace existing rules and have called the proposal complex and negative.

"Domestic Flying Credits is a bad idea, not implementable and a negative regulation. Civil aviation ministry was wrongly advised on the issue," said Kapil Kaul of Centre for Asia Pacific Aviation.

"Instead of scrapping the route dispersal guidelines the aviation ministry introduced the domestic flying credits concept which is even more complex and intrusive. It goes against the "less government more governance" slogan of the central government. On top of that the 5/20 rule has been merged with the flying credits concept. The government should do away with these rules if we wish to make flying affordable to Indian masses," said Amber Dubey, partner and head of aerospace and defence at KPMG.

Under the scheme ministry has proposed that airlines earn at least 300 domestic flying credits to fly on international routes of more than six hours. For flying shorter routes such as to the Gulf or Southeast Asia, they'd need at least 600 credits. These credits will be based on routes and distances airlines fly domestically, with higher points for flights to remote areas than to the metros. Credits will be lower on flights between metros and large cities and based on the number of seats offered, not on passengers. Another proposal by the ministry was that airlines maintain at least 200 credits every year to retain their international flying rights.