Shares of aviation stocks are active on buyers’ radar hoping that the Government is likely consider new norms for flying international. Jet Airways and SpiceJet were up 3-4 percent intraday on Monday as the government may move a Cabinet note soon on scrapping the current regulations allowing international operations for domestic airlines and replacing them with "simple and clear" norms.
Official sources today said the existing norms, popularly known as 5/20 rule and which are part of the revised draft Civil Aviation Policy, allow only those domestic carriers fly abroad which have a fleet size of 20 aircraft and completed five years of operations.
"After the government released the draft rules, there has been further interaction with the airlines, the 5/20 (rule) has to now go to the Cabinet," a source said.
Noting that proposed norms are "simple and clear", the sources said that the new rule, once in place, would qualify start-up carriers for flying abroad after two to two-and-a-half years of launching domestic operations.
According to the proposed norms, a new airline would become eligible to apply for international operations once it has accrued at least 200 domestic flight credits, and which comply with revised route dispersal guidelines.
"Airlines are expected to take a two to two-and-half years time in fulfilling these criteria as well as meeting regulatory requirements for such operations," the source said.
According to the proposed rules, on reaching the 300 domestic flight credits threshold, the airline can apply for long haul international routes of more than 6 hours flying time.
The government will consider the application of a carrier in accordance with the provisions of the bilateral Air Services Agreement with the country concerned, according to the proposed norms.
At 09:52 hrs Jet Airways was at Rs 465.20, up Rs 14.25, or 3.16 percent and SpiceJet was at Rs 23.00, up Rs 0.50, or 2.22 percent on the BSE.
(With inputs from PTI)
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