KOCHI: Union Civil Aviation Minister Ashok Gajapati Raju has said that he was in favour of lifting the five-year aviation exposure and 20-fleet (5/20) stipulation for an airline to operate in the international routes and the Union Cabinet has to take a decision in this regard.
Addressing newsmen at the Cochin international airport here after visiting the unique solar plant facility of the airport he said that new aviation policy which is the final stage of preparation will take a stand on the issue.
The 5/20 stipulation is a major impediment in Kerala Government's way of launching its new airliner Air Kerala as a CIAL arm.
He also said that the Civil Aviation Ministry was not in a position to force airlines to bring down the fares in tune with the slump in oil prices.
"A study by the Ministry has shown that only 1.7 percent of the total volume is overpriced. If we interfere, it will affect the remaining 98.3 per cent which is not in the interest of the vast volume of passengers.
The airline industry had a respite only recently when the oil prices came down. We will request them to bring down the prices," the Minister said.
Congratulating CIAL for the solar achievement, he said the Cochin international airport has to 'gain' the international hub status which the Centre was proposing for premier airports in the country.
"Nobody grants the hub status. You have to secure it. One of the major components of it is the ATF tax which is at a high 29 percent in Kerala. This is substantial cost of an airline. You have to make flying from here attractive. You need to have spokes for the hub also," he said.
The Minister also said that the CIAL's gesture of waiving parking and landing fee for airlines directly operating to US and Europe will be considered and brought to the attention of airlines.
The Minister also said that Air India and Air India Express have already increased services from Kerala.
