a) the details of the profits and losses of public and private airline operators in the country over the last three years;
(b) whether most airline operators in the country have been recording losses for the last three years and if so, the reasons therefor; and
(c) whether the Government is proposing to assess and improve the situation to enable airline operators in the country to function effectively and if so, the details thereof
The Minister of State (IC) in the Ministry of CIVIL AVIATION
(Shri Hardeep Singh Puri)
(a) to (c): The financial performance of Scheduled Indian Carriers for both Scheduled Domestic and Scheduled International services, as per information made available by the Scheduled Indian Carriers to Directorate General of Civil Aviation (DGCA) is attached as Annexure.;
Each airline prepares its business plan on the basis of its own market assessment and the airline is responsible for its commercial operations. The Government is conscious of financial difficulties faced by the Airline Companies. Accordingly, the Government has been responding to industry conditions and undertaking specific measures to facilitate and enable growth of the sector. The major steps taken by this Ministry to help civil aviation sector include:
I. Provide airport infrastructure through Airports Authority of India and the private operators.
II. Provide an efficient Air Navigation System in the Country.
III. Regulate the aviation industry through Directorate General of Civil Aviation to ensure safety standards.
IV. Coordinate with all stakeholders to resolve their issues through regular interactions.
V. Provide Viability Gap Funding and other concessions to selected airline operators under Regional Connectivity Scheme (RCS) - UDAN (Ude Desh ka Aam Nagrik) as per the scheme document.
VI. Provide financial assistance to Air India as per the approved Plan.
VII. Reduction of Central Excise Duty applicable on Aviation Turbine Fuel (ATF) from 14% to 11% w.e.f. 11th October 2018.
VIII. Rationalization of Goods and Services Tax provisions.
IX. Rationalization of Category-I routes under Route Dispersal Guidelines on the basis of criteria given in
National Civil Aviation Policy - 2016.
X. The requirement for 5/20 is modified and all airlines can commence international operations provided that they deploy 20 aircraft or 20% of total capacity (in terms of average number of seats on all departure put together) whichever is higher for domestic operations. For this purpose, the published schedule of airlines will be the basis for monitoring, assuming that one aircraft would have 6 departures per day.
XI. Liberalization of domestic code share points in India within the framework of Air Service Agreements.
XII.With a view to modernize existing airports so as to establish high standards and ease demand pressures on them, 100% Foreign Direct Investment (FDI) under automatic route has been allowed in brownfield airport projects. This would facilitate the development of domestic aviation infrastructure. FDI for Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline has been allowed upto 49% under automatic route. For Non Resident Indians (NRIs), 100% FDI will continue to be allowed under automatic route. Foreign airlines are allowed to invest in capital of Indian companies operating scheduled and non-scheduled air transport services up to the limit of 49% of their paid up capital. Such investment is subject to the condition, inter alia, that Scheduled and Non-Scheduled Operator''s Permit would be granted only to a company the substantial ownership and effective control of which is vested in Indian nationals.