What do you understand by the so called 5/20 rule prevalent in Civil Aviation Sector in India. Discuss the dissenting views on this rule and current government stand in this context.

February 20, 2022 February 21, 2024

5/20 Rule states that before an airline is allowed to fly abroad, it must be at least 5-year-old and must have at least 20 aircraft in its fleet.
The rule does not act good to domestic players. It is costly and challenge the ease of doing business in India as; new Indian flight carriers are not allowed to offer services outside whereas; foreign carriers are allowed to offer services in India. This deteriorate competitive environment within the country. The rule is said to be replaced by more friendly rule known as Domestic Flying Credits (DFCs) system by the current government.

Topics: GS-III: Infrastructure Ports Roads Airports Railways

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