India’s Aviation Rules To Be Overhauled?

India’s top airline authorities will meet Civil Aviation Minister Pusapati Ashok Gajapathi Raju tomorrow to discuss scrapping restrictive rules for flying abroad and high taxes charged on the aviation turbine fuel (ATF).

Senior officials from Jet Airways, SpiceJet, IndiGo, Air India, AirAsia India, GoAir and Vistara (Tata-SIA joint venture which is to be launched soon) will attend the meeting.

The airlines are likely to demand reduction in taxes on ATF, which constitutes about 40-45% of the total cost of operating an airline. They may also demand exemption from customs duty for aircraft engines. The exemption was withdrawn in 2012.

India’s aviation sector has suffered heavy losses due to competitive pricing, soaring fuel costs and airport taxes.

The airlines may also request to withdraw the 5/20 rule. Under this rule, airlines must have a fleet of 20 aircraft and five-year experience of domestic operations to become eligible to fly abroad.

They may also raise the issue of government’s draft policy on air connectivity to regional and far-off areas. All the major airlines have aired their views to the Civil Aviation Ministry, opposing various provisions of the draft policy.