Question : Financial Problems in Aviation Sector

(a) whether the Government has taken concrete steps to resolve the financial problems of the Civil Aviation Sector and if so, the details thereof;

(b) the details of the losses suffered by various airports in the country during each of the last three years and the current year along with the reasons therefor, airport and year-wise; and

(c) the details of the remedial measures taken to make these airports viable and profitable, airport-wise?

Answer given by the minister

The Minister of State in the Ministry of CIVIL AVIATION
(Shri Jayant Sinha)

(a) Government after extensive stakeholders consultation has notified a National Civil Aviation Policy (NCAP) which lays a roadmap to establish an integrated ecosystem with an objective for significant growth of Civil Aviation Sector covering 22 policy areas including regional connectivity besides promotion of entire aviation sector chain in a harmonized manner which inter alia includes cargo, Maintenance Repairs and Overhaul (MRO), general aviation, aerospace manufacturing and skill development etc.

(b) & (c) The details of the losses suffered by various airports in the country during the last three years and the current year is enclosed at Annexure. These airports have incurred losses due to low revenue generation which was not adequate to meet the total expenditure pertaining to the respective airports. Airports Authority of India has taken several steps to make the loss making airports viable and profitable by development of cargo activities, allowing operations of flying schools at non-operational airports, encouraging MRO activities, revision of base rates, enhancement of non-aeronautical revenue which includes rationalization of parking charges, utilization of empty space at the terminal, leasing of unused land etc.

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