Jet Airways and Spicejet were up 3-4 percent intraday on Monday as soon, the Government may move a Cabinet note on scrapping the current regulations allowing international operations for domestic airlines and replacing them with simple and clear norms.
As per the official sources, the existing norms that are well known as 5/20 rule and which are part of the revised draft Civil Aviation Policy will grant only those domestic carriers for flying abroad which have a fleet size of 20 aircraft as well as completed five years of operations.
A source include that After the government released the draft rules, there has been further interaction with the airlines, the 5/20 (rule) has to now go to the Cabinet. The source further added nothing that proposed norms are simple and clear since the new rule, once in place, would be eligible start-up carriers to operate international flights after two to two-and-a-half years of launching domestic operations.
A new airline would become eligible to apply for cheap air tickets international operations, according to the proposed norms. Once it has accrued at least 200 domestic flight credits, and which comply with revised route dispersal guidelines. However, it will take two to two-and-half years of time in fulfilling these criteria and meeting regulatory specifications by the airlines for those operations, the sources add.
On the other hands, the new proposed rules are added requirements that carrier operators who are reaching the 300 domestic flight credit threshold, the airline can apply for long haul offshore itinerary of more than 6 hours flying time.
According to the proposed norms, the government will consider the application of a carrier on the basis of the provisions of the bilateral Air Services Agreement with the country concerned.