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2-Nov-2015 11:19 AM

India considers three policy options re 5/20 Rule including DFC scheme

India's Minister of Civil Aviation Shri P Ashok Gajapathi Raju released (30-Oct-2015) the Revised Draft National Civil Aviation Policy (NCAP 2015), outlining the following in the section entitled 'Rule 5/20'. The government invites suggestions on three possible policy options:

  • 5/20 Rule may continue as it is; or
  • 5/20 Rule will be abolished with immediate effect; or
  • Domestic airlines will need to accumulate 300 DFC before commencing flights to SAARC countries and countries beyond 5000km radius from New Delhi;
    • They will need to accumulate 600 DFC before starting flights to the remaining parts of the world;
    • The DFC earned will be equal to the Available Seat Kilometre (ASKM) deployed by the airline on domestic routes divided by 10 million;
    • All domestic airlines will required to earn at least 300 DFC p/a in order to maintain their international flying rights.
    • Free to re-deploy their excess capacity (above 300) between domestic and foreign operations and also trade them. [more - original PR]

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