"Mr Tata should, in fact, urge Vistara and AirAsia in which his group is a shareholder, to serve India willingly before being allowed to fly internationaly."
A very public and intense lobbying on 5/20 rule, which permits only airlines with five years of experience and 20 aircraft to fly abroad, is being done by domestic carriers.
The usually reticent Tata Group chairman emeritus and Tata Trusts chairman Ratan Tata was vocal on the issue when he tweeted; "It is sad to see the incumbent airlines lobbying for protection and preferential treatment for themselves against the new airlines which have been formed in full compliance with prevailing government policy and providing air transport to Indian citizens in line with the dream of a New India promoted by the new government under Mr Modi's leadership."
Ajay Singh, chairman of SpiceJet Ltd, who belongs to the faction that wants the 5/20 rule to stay, was quick to respond to this.
In a reply, he said he did not see anything wrong in new carriers being asked to "serve India" before being allowed to fly overseas.
"All of us were asked to serve our great country before we got profitable rights to fly abroad. We served with great pride. What is wrong if these two foreign-controlled airlines are also asked to serve India before being allowed to fly international?" he put forth his argument.
The promoter of the Gurgaon-based airline added; "Mr Tata, whom we respect greatly, should in fact urge these airlines in which his group is a shareholder, to serve India willingly before being allowed to fly international. While obtaining a licence, these two airlines had undertaken to follow the 5/20 rule, a rule they are now opposing so vehemently".
The National Civil Aviation Policy (NCAP), whose draft was released by the government more than a year back, has been delayed due to the row over its 5/20 between the new and incumbent carriers.
The incumbent airlines including IndiGo, SpiceJet, Jet Airways and GoAir, who currently operate flights on foreign routes after complying with the 5/20 rule, do not want norm to go away.
The new carriers, of whom two are joint ventures of Tata Group – AirAsia India (with Malaysia's AirAsia Bhd) and Vistara (with Singapore Airlines – have been lobbying hard for the scrapping of the prohibitive rule. The revised policy is expected to be released in a month.
Singh raised the issue of "effective control by Indian shareholders" while putting forward his view.
"It is also evident that these airlines are controlled by their foreign parents. This is in complete violation of Indian laws that require airlines in India to be effectively controlled by Indian shareholders. Mr Tata should urge these airlines to follow Indian law in letter and spirit," said SpiceJet promoter.
According to him, when "no country in the world" was giving preferential treatment to Indian carriers, then why should India?
"No country in the world, including Singapore and Malaysia, allows its airlines to be controlled by foreign airlines. If Indian airlines like SpiceJet and Indigo are not allowed in these countries, why should they be allowed to control airlines in India? said Singh.
Tata, on the other hand, applauded the civil aviation ministry for considering the request of the new airlines to remove the 5/20 rule in the NCAP and urged it to come out with a policy "free of discrimination and protectionism".
"One hopes when the new policy is introduced, it will be free of discrimination and protectionism so that Indian aviation can grow for the benefit of consumer and the common man -- and not to serve the interests of select beneficiaries of protectionism," he tweeted.
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