“5/20 Rule” of Aviation Sector likely to be scrapped by the Union government

Union government is planning to scrap the 5/20 Rule prevalent in the Indian aviation industry. Thus, Govt. plans to fulfill the demand of a few private airlines that want the rule to be relaxed.

5/20 Rule: As per this rule, a carrier must be 5-year-old and have at least 20 aircraft in its fleet before being permitted to fly abroad.

The UPA-II Government had started the course of scrapping the 5/20 rule but was not able to finish the job. Now, the new Modi government had called a meeting of the CEOs of all the Indian Airlines to look into the matter. In the Meeting, 4 private airlines (Air India, Jet, IndiGo and SpiceJet) requested retention of the 5/20 rule whereas the new airlines of Tatas, one with Malaysian low-cost carrier AirAsia and other with Singapore Airlines, requested the deletion of this rule.

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