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PM proposed Reforms to Aviation policies

  • Ministry of Civil aviation is proposing to scrap or modify 5/20 rule in the policy in order to provide equal opportunities to grow for new entrants such as Vistara and Air Asia India.
  • As per existing rule the aviation company should complete five years of domestic service and should have a fleet of 20 aircrafts to undertake foreign trips.
  • The Prime Minister of India wish to abolish the rule in to without any replacements or substitution as the rule itself is anti-pro-growth.
  • But the old aviation companies such as Jet Airways, Indigo and spice are against this proposal as they had already met this rule.
  • However, the ministry of civil aviation thinking of obtaining public opinion.
  • But the domestic companies get a level field to compete with the foreign companies if the 5/20 rule is scrapped.
  • The prime minister felt that regulations cannot be framed to promote foreign companies at the cost of domestic companies and it will not happen and cannot be supported.

Source: ET

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