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Ratan Tata slams airlines opposed to removal of 5/20 rule, calls it vested interest

Tata Group chairman emeritus lauded the Civil Aviation Ministry for considering the removal of the controversial 5.20 rule.

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Tata Group chairman emeritus and Tata Trusts' Chairman Ratan Tata has slammed incumbent airline companies lobbying for "discriminating policies", referring to those opposing the removal of the 5/20 rule in the aviation industry, in a letter on his Twitter account (@RNTata2000). 

Lauding the Civil Aviation Ministry's consideration of doing away with the controversial 5/20 rule which currently requires airlines to fly domestic routes for at least five years and garner a fleet of 20 aircraft before it can fly on international routes, Ratan Tata said, "The Minister of Civil Aviation and the Ministry needs to be applauded for considering the removal of the controversial 5/20 rule."

Speaking out against those opposing the move, he said, "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."

These protectionist moves have held back progress in India compared to open economies that have thrived on competition overseas, he added.

Tata signed off the letter saying that "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."

Read the full letter here

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