Lobbying by older airlines pains Ratan Tata

New Delhi: Hitting out at older carriers, top industrialist Ratan Tata on Sunday accused them  of lobbying and using “monopolistic pressures” to retain preferential treatment under the controversial 5/20 rule that restricts overseas flying by new airlines.

However, reacting strongly to the charge, low-cost carrier SpiceJet’s chief Ajay Singh asked him to rather  advise the two airlines associated with Tatas — Vistara and AirAsia India — to first serve  India and then seek to fly international.
According to news agency reports, Mr Singh also alleged that the two carriers were  apparently controlled by their foreign parents and said they had undertaken, while  applying for the licence, to follow the 5/20 rule which they are opposing so vehemently now.

AirAsia India and Vistara — two airlines operated by the Tatas through joint ventures — are presently ineligible to operate overseas under the 5/20 norm, which requires an Indian carrier to have minimum five years operational experience and at least 20 planes to operate international flights.

Terming as sad the lobbying of incumbent airlines for “protection and preferential treatment”, he tweeted that such moves were reminiscent of the monopolistic pressures by entities with vested interests who  fear competition.

“The lobbying for discriminating policies between old and new airlines is reminiscent of protectionist and monopolistic pressures by vested interest entities who  seem to fear competition, as in a variety  of other sectors over the years,” Mr. Tata said in a strong message posted on Twitter. “These protectionist moves have held back progress in India compared to open economies that have thrived on competition overseas,” he said in his message.

“In the airline industry in India, it is sad to see the incumbent airlines lobbying for protection and preferential treatment for themselves against the new airlines ... they have been formed in full compliance with prevailing government policy and providing air transport to Indian citizens in line with the dream of a ‘New India’ promoted by the Prime Minister Narendra Modi’s leadership,” he said.