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‘Game changer aviation policy’: Airlines, flyers to get fare deal now

Calling it India’s first ever integrated civil aviation policy, civil aviation minister Ashok Gajapathi Raju said it will be a “game-changer for the sector”.

india Updated: Jun 16, 2016 09:59 IST
HT Correspondent
Aviation

Calling it India’s first ever integrated civil aviation policy, civil aviation minister Ashok Gajapathi Raju said it will be a “game-changer for the sector. Photo by Kalpak Pathak / Hindustan Times.(Hindustan Times)

Calling it India’s first ever integrated civil aviation policy, civil aviation minister Ashok Gajapathi Raju said it will be a “game-changer for the sector”.

The changes, to begin with, were visible in the way airlines responded. Tony Fernandes, the head of AirAsia, part-owner of AirAsia India, appeared ecstatic on Twitter, saying: “Almost an end to vested interests. Power to the people. Well done @narendramodi. You kept your word.”

Read: Aviation policy cleared: Airlines need not wait 5 yrs to start flying overseas

Fernandes thinks 20 aircraft is too many for flying international, but that it is still a “big day for Indian aviation”.

In contrast, the older airlines were subdued. Jet Airways’ spokesperson Ragini Chopra said, “We have not got the details. Let us study it and then we will react.” The public relations agency for IndiGo said there will not be a reaction.

That is understandable. The so-called 5/20 policy, requiring airlines to fly for at least five years in the country and have 20 aircraft before they could fly abroad, had been a subject of intense lobbying.

Read: New civil aviation policy focuses on capping fares, regional connectivity

Flying abroad sharply increases the utilisation of airplanes since those that fly only domestic routes lie idle at night. Planes flying abroad can fill their tanks in other countries, most of which have cheaper aviation fuel. And they earn money in precious foreign exchange.

Naturally, all new airlines — such as the two Tata Group joint ventures, AirAsia India (with AirAsia) and Air Vistara (with Singapore Airlines) — have been keen to fly abroad. But older ones such as IndiGo, Jet Airways and SpiceJet, which already had the rights to fly international, opposed a relaxation of the eligibility.

About the decision to scrap the 5/20 rule, communications minister Ravi Shankar Prasad said, “A questionable legacy has been thrown into the dustbin.” The rule is a legacy of the United Progressive Alliance government.