AirAsia seeks waiver to allow Indian subsidiary to fly overseas

AirAsia seeks waiver to allow Indian subsidiary to fly overseas

Lack of aircraft and quota under bilateral traffic rights prevent AirAsia India from branching out of its current domestic flights only.

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PETALING JAYA: AirAsia is hoping the Indian government will relax its 0/20 rule, which states an airline must have 20 or more aircraft before being permitted to fly overseas.

This was part of a note shared with Indian Prime Minister Narendra Modi by the Malaysian Business Council recently, the Press Trust of India (PTI) reported.

Currently, AirAsia India, which is a joint venture between the Malaysian based low-cost carrier and the Tata group, can only serve domestic routes.

“We are seeking a waiver or part-waiver of the 0/20 rule.

“If the (Indian) government abolishes the condition of having a minimum of 20 aircraft, AirAsia India will be able to start operating flights to Malaysia in 2-3 months time, depending upon the availability of slots,” AirAsia Berhad executive chairman Kamarudin Meranun was quoted as saying.

He added the request was because demand for flights from Malaysia to India was high but that under bilateral traffic rights, the quota was filled up with Malaysia Airlines and Malindo Air also serving the various destinations in India.

According to PTI, Indian authorities’ 0/20 rule was originally set as 5/20, whereby airlines needed to have served the domestic market for at least five years and have 20 aircraft in order to begin international flights. But this rule was partially abolished to become the 0/20 rule today.

Kamaruddin told PTI that the Indian government had assured AirAsia that it was “looking into our suggestion”.

Meanwhile, AirAsia Berhad has welcomed the recently concluded Air Services Agreement between India and Malaysia.

“There hasn’t been improvement in terms of traffic rights since the last agreement in 2010 and all of those seats are being used by Malaysian airlines coming into India. Now increased rights, although not much, will help (in operating more flights).

“This is a start and hopefully there will be more coming from the (Indian) government,” AirAsia chief executive officer Aireen Omar was quoted as saying.

 

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