We are looking at partial abolition of 5/20 rule: Mahesh Sharma

Interview with union minister of state for civil aviation

With the older airlines threatening to take the government to court over certain changes to policy like abolition of the 5/20 rule, Mahesh Sharma, Union minister of state for civil aviation, tells Arindam Majumder that the government is considering partial abolition of the controversial rule. Edited excerpts:
 
The aviation industry is at war on the 5/20 issue. The older airlines under the Federation of Indian Airlines (FIA) have accused the ministry of favouring two particular airlines and have threatened to go to court. How are you reacting to this?

As a part of our new aviation policy, 5/20 rule is one of the issues that are being looked upon. Yes, it is a matter of review, but I assure the government will take a decision in the wider interest of civil aviation industry and not any individual or a particular airline. We have held several rounds of meetings with stakeholders – airlines, officials and ministers – on the issue.

Older airlines have said their views were not considered in drafting the policy.

We had put the policy in public domain and invited suggestions from stakeholders and common public. This complaint had come to us also saying that the management of the older airlines was out of country as it was New Year’s Eve. After that, we had invited them once again and gave them fair chance to put across their view. We listened to them and now I think this complaint is not fair. Very shortly, after a review, 5/20 along with other issues in the policy will be finalised.

Is there any particular issue that the ministry has finalised yet?

We had, in the past, contemplated on many alternatives. At present we are looking at partial abolition. For example, in place of 5/20 we can make it 3/10 or 3/12. We have also looked at options like 0/10 and 0/20. These are some of the options that we have discussed. We are very close to selecting one of these.

FIA demands that if 5/20 is abolished, the route dispersal guidelines (RDG) should be abolished too. What is your view on this?

RDG will continue to remain. There can be minor changes to the guidelines but RDG will not be abolished.

What are the changes that you are contemplating in RDG?

Some minor changes like adding some routes in category 1, 2 or 2A! There could be slight, 5-10 per cent, changes in the routes but all the categories will continue to stay as they are. There could be some changes in percentage share.

The industry says that levying a cess of 2 per cent will ultimately lead to increase in airfare. Is the ministry rethinking this move?

It’s true that the ministry is rethinking on this issue as there was considerable reservation about this from the stakeholders. It is under review but no firm decision has been taken as yet.

Budget support to Air India has almost been halved as compared to last year. Is that a precursor to stopping it altogether?

See the finance ministry has limited resources and the FM takes decision which has to be holistic. Personally, I believe, the government should refrain from doing this business, but the idea of disinvesting Air India is not under active consideration of the government.

There are complaints that new airlines are being controlled from abroad.

I assure the industry that we are closely looking at the issue of ownership and control. The issue has been brought to our cognisance and we are reviewing it.