Question : AIR PASSENGER AND AIR CARGO TRAFFIC

(a) whether there is a rise in air passenger and air cargo traffic at various airports of the country during the last three years and the current year;

(b) if so, the details thereof along with the number of air passengers and air cargo traffic registered at the airports during the said period;

(c) whether the rise in air passenger and air cargo traffic is due to low cost of flying and slash in air ticket prices and if so, the details thereof;

(d) whether all the airports in the country including the airports in Chennai are having sufficient facilities to cater to the increasing air passenger and air cargo traffic;

(e) if so, the details thereof and if not, the steps taken by the Government to meet the growing demand of air passenger and air cargo traffic; and

(f) the losses incurred by the public and private airlines in the country during the last three years and the current year along with the reasons therefor and the steps taken to reduce these losses?

Minister of State in the Ministry of CIVIL AVIATION (Dr Mahesh Sharma)

(a) & (b): The air traffic in terms of aircraft movements and passenger traffic have increased during the last three years, registering a Compound Annual Growth Rate (CAGR) of 3.3% and 5.6% respectively. However, freight traffic has witnessed negative growth and declined by 1.0% from 2010-11 to 2013-14. In the current year (April 2014-January 2015), aircraft movements, passengers and freight traffic has increased by 4.5%, 11.8% and 11.7% respectively in comparison to the traffic handled during April 2013- January 2014. The details of the number of air passengers and air cargo traffic registered at the airports during the last three years and the current year (till January, 2015) are at Annexure-I.

(c) : The rise in air passenger and air cargo traffic is an assorted result of various factors including economic environment, commercial factors, increased traffic demand and load handling capacity of airports and airlines, overall development in civil aviation sector etc.

(d) & (e): Yes, Madam. All the airports in the country including Chennai Airport have sufficient capacity to cater to the increasing air passenger and air cargo traffic. The Indian airports have i combined capacity to cater to 220.04 million passengers and 4.63 million MT cargo per annum ~ and handled 168.92 million passengers and 2.28 million MT cargo in 2013-14. The Chennai airport has the capacity to cater to 23.00 million passengers and 1.10 million MT cargo per annum and handled 12.90 million passengers and 0.22 million MT cargo in 2013-14.

(f): Air India has incurred losses of Rs. 7559.74 crores in 2011-12, Rs. 5490.16 crores in 2012-13 and Rs. 6279.60 crores (provisional) in 2013-14. The relevant information in respect of private airlines are being collected and will be laid on the Table of the House. The main reasons for the losses are adverse market conditions, increase in fuel prices, adverse movement in exchange rate.The Government has approved Turn Around Plan (TAP) and Financial Restructuring Plan (FRP) to improve the oper ational and financial performance of Air India. Further, an Oversight Committee comprising of Secretary, Civil Aviation, Expenditure Secretary, AS&FA and Joint Secretary of Ministry of Civil Aviation has been constituted to monitor closely the performance of Air India vis-a-vis milestones set in the TAP.