Govt may ease some restrictions on entry of domestic players in airline sector

Posted By: Religare
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Govt may ease some restrictions on entry of domestic players in airline sector
As the domestic aviation sector continues to struggle with losses and lack of foreign investor participation, the government is looking at easing some restrictions for domestic players to enter the sector, according to a Business Standard report.

The report said that the government might reduce the minimum fleet size requirement and operational experience required for an airline to launch international services. The move, if happens, would pave way for the Tata Group to smoothly launch its two airline ventures in India-- Tata-SIA Airlines and Tata-AirAsia.

The present norms require Indian carriers, looking to fly overseas, to have at least 20 fleets and must have operated for at least five years.

Business Standard quoted Civil Aviation minister Ajit Singh as saying "The 5/20 norm for flying international will be completely abolished. We are preparing a Cabinet note on this. Since everything needs to be completed before February-end (when the code of conduct for the general elections comes into force), we will do it before that."

Apart from the Tata Group, the move will also help existing airlines in India like GoAir which will want to operate international flights from India.

Dion Global Solutions Ltd.

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