September Aviation Policy Change, India

Marc-Bombenon-Aviation2A new civil aviation policy in India is slated for September 2015. This highly anticipated policy expected to alter the current civil aviation rules has been cleared by the ministry and sent for approval of the PMO and department of finance.

The overwhelmingly controversial 5/20 rule requires an airline in India to complete five years of domestic service with a minimal fleet size of at least 20 aircrafts before it can be allowed to fly international. The total amount of air passenger traffic in India has increased from 109 million to 143 million in just 2 years, placing unsustainable demands on airlines under the current policy. Many organizations predict an increase anywhere from 290-300 million passengers by 2020. In order to prepare, an estimated 400 additional airports will need to be ready and available for both domestic and international flights. Repealing the rule will promote the necessary private investment to complete construction, increase fleet size, and train staff.

In addition to the 5/20 rule, new regulation will be sure to address land development issues, foreign direct investment (FDI), and bilateral agreements.