AirAsia CEO takes swipe at Indian airline rules
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AirAsia CEO Tony Fernandes has once again criticised the Indian government’s rules for overseas flights.
The so-called “5/20 rule” means that India-based airlines have to have operated domestic routes for five years and have a fleet of at least 20 aircraft before they are permitted to launch international routes.
But Fernandes – a long-standing opponent of the current regulations – said last week that the rule would hinder the competitiveness of India’s aviation industry.
“It would mean less economic activity as aviation has been a key growth generator for other countries like Singapore and Dubai,” the AirAsia chief was quoted saying by the Economic Times.
“AirAsia will fight those who try to protect the status quo by lobbying for antiquated rules. Indian people must be put first before those who just lobby to protect their own bottom line as opposed to competing,” he added.
But Fernandes faces opposition from other the Federation of Indian Airlines (FIA), which counts Jet Airways, SpiceJet and IndiGo among its members. In January 2015, the FIA wrote a letter to India’s Aviation Ministry, urging it not to change the regulations.
On this issue, India’s aviation sector appears to be divided between incumbent airlines that have been forced to abide by the 5/2-0 rule, and start-ups like AirAsia India and Vistara who want it changed.
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