Govt indecisive on 5/20 norm; seeks more comments

Playing safe on the vexed international flying norms for domestic airlines, the government has kept all options open on 5/20 rule even as it today unveiled a comprehensive draft civil aviation policy.
By giving three options on the norm for stakeholders, the Civil Aviation Ministry seems to have taken a cautious approach on the issue before putting in place the final policy that is expected in a couple of months.
The revised draft policy, which has been in the works for nearly a year, was unveiled today and provides for a slew of incentives to various segments of the domestic aviation sector which is yet to realise its full potential.

Despite various lobby groups batting for and against the 5/20 norm -- whereby only local carriers having five years of operational experience and a fleet of 20 aircraft are allowed to fly overseas -- the policy did not provide a finality on the matter.
Now, the government has sought suggestions from stakeholders on three options -- continuing with existing norm, scrapping it altogether or link it to domestic flying credits (DFCs).
Under the third option, domestic airlines would need to accumulate 300 DFC before commencing flights to SAARC countries and countries with territory located entirely beyond a 5,000 kilometre radius from New Delhi.

"They will need to accumulate 600 DFC before starting flights to the remaining parts of the world. The DFC earned by an airline will be equal to the Available Seat Kilometre (ASKM) deployed by the airline on domestic routes divided by 1 crore.

"For aircraft with 100 seats or less, the DFC shall be equal to the ASKMs deployed on Category II, Category IIA and RCS routes using the smaller aircraft, multiplied by the prescribed multiplication factor and divided by 1 crore," the draft policy said.
After examining the suggestions, the government will take a final decision on the 5/20 rule, Civil Aviation Secretary R N Choubey said.

Significantly, start-up carriers Vistara and AirAsia India have been demanding the removal of 5/20 norm so that they can operate flights overseas.
However, established airlines under the banner of Federation of Indian Airlines (FIA) are opposed to any change in the norm.
AirAsia India CEO and Managing Director Mittu Chandilya said it was surprising to see the lack of clarity and progress on 5/20 norm.
Vistara's Chairman Prasad Menon said the carrier has been calling for scrapping 5/20 norm without any conditions.
On 5/20 norm, SpiceJet CMD Ajay Singh said it was not an easy subject and the issue needs to be seen in the larger context of whether it improves air connectivity.