MIAMI: The International Air Transport Association (IATA) has supported India's move to abolish the international flying eligibility norms despite opposition from Air India and Jet Airways, the association's members from the country. 

The difference of opinion among various stakeholders notwithstanding, it is important to look at the big picture, IATA director general and chief executive Tony Tyler said on the sidelines of the association's annual general meeting in Miami. "India has a lot of bilateral air services rights that have not been utilised. The government needs to take a holistic view and work towards increasing the utilisation of these rights by Indian carriers. Restricting people (read airlines) for five years is going the wrong side of it," said Tyler. 

Both Air India and Jet Airways, along with other Indian carriers, have opposed the government's move to remove the current rule that mandates five years of domestic flying experience and a fleet of 20 aircraft for any airline to fly international. 

The two IATA members from India have said that the abolition of the so-called 5/20 rule will mean lesser focus on domestic operations by two new carriers — Vistara and AirAsia India. 

The government, meanwhile, is discussing a Domestic Flying Credit (DFC) system to replace the 5/20 norm. Under the DFC formula, flights to smaller cities earn more points than those on trunk routes. Points earned can be redeemed for international flying rights. 

A total of 300 DFCs make an airline eligible for long-haul international flights and 600 allows it to fly short-haul routes. It is estimated that an airline with a fleet of five aircraft will take a year to earn 300 DFCs. IATA has also criticised the formula on the grounds that it is complex and goes against the motive of the new government to improve the ease of doing business in India. 

"Every airline has its own route network and asking them to fly some or the other under the DFC proposal is like introducing extraneous element into route planning of airlines," said Tyler. The DFC system has been criticised by all airlines in the country that have termed it needlessly complicated. 

Air Asia founder Tony Fernandes has also been critical, calling the DFC system more complex than the Duckworth-Lewis formula that's used to calculate how much a cricket team needs to score in a match cut short by bad weather or other reasons. 

IATA also feels the government should be fair to newcomers joining the Indian aviation industry, as the country requires these new carriers to improve connectivity. "It is like building barriers to entry. Every airline will fight for what it feels is best for its commercial interest. But the role of the government should be to facilitate the entry of new businesses," Tyler said in answer to a question on older players resisting newcomers such as Vistara and AirAsia in India. 

The existing carriers in India have opposed the entry of Vistara and AirAsia India on the grounds that the foreign direct investment policy does not allow foreign airlines to float new carriers in the country. 

(This correspondent was in Miami at the invitation of the IATA)