SpiceJet opposes Govt's move to ease 5/20 rule

The rule has resulted in massive air connectivity within the country, Ajay Singh told a business daily.

SpiceJet has in-principle objections to the Government’s move to ease the 5/20 rule even though the budget carrier will not be affected if the same is removed, Chairman Ajay Singh has been quoted as saying.

The rule has resulted in massive air connectivity within the country, Singh told a business daily.

“Our belief is that if we were asked to serve the country before we got lucrative rights to go abroad it is unfair that the new carriers should also not have to serve the country before flying overseas,” Singh says.

Pointing to AirAsia and Vistara, Singh adds that there is no country in the world today which allows its airlines to be controlled by a foreign airline.

"The US does not do it, Canada does not do it, Europe, the Gulf states, Malaysia and Singapore also don't,” Singh told the financial newspaper.

Vistara and AirAsia are controlled by their foreign parents Singapore Airlines and AirAsia Berhard, respectively.

AirAsia Investment Ltd. (AAIL), the investment arm of AirAsia Berhad, holds 49 per cent equity in AirAsia India, while Tata Sons holds a 30 per cent stake in the project and Arun Bhatia has the remaining stake.