Lok Sabha Question No. 292 (STARRED), answered on 2018-03-15
Subject: High Operational Charges in Aviation Sector
Ministry: CIVIL AVIATION
Asked by: ANIRUDHAN SAMPATH

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## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA STARRED QUESTION NO. : 292 (To be answered on the I5th March

2018)

## High Operational Charges in Aviation Sector

## Will the Minister of CIVIL AVIATION

- (b) if the details thereof;

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be pleased to state:-

- (2 whether it has come to the notice %f the Government that high and other charges; fuel; high service tax
- (d) if s0, the details thereof; and

Minister of CIVIL AVIATION

(a) to (e): A statement is laid on the table of the House:

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- rise;
- ee tZeacoerective measures taken/ proposed to be taken by the Government to reduce the charges?

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## ANSWER

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(Shri Suresh Prabhu)

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## STATEMENT IN RESPECT OF LOK SABHA STARRED QUESTION NO. 292, REGARDING "HIGH OPERATIONAL CHARGES IN AVIATION SECTOR" TO BE ANSWERED ON 15.03.2018

- (a) & (): The cost of Aviation Turbine Fuel (ATF) constitutes approximately 35-50% of Operational cost of an airline in India The pricing of ATF was deregulated with effect from Ist April, 2001 and the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of ATF in line with its and other market conditions. price
- (c) to (e): The number of aircraft that are annually to other countries for MRO works for last three years are as follows: sent

However , there has been increase in number of aircraft in the country, but; the number of Maintenance, Repair and Overhaul's (MRO's) have increased proportionally specially for engine and component level maintenance At present; only MIs GMR Aerotech, Mls Blue Dart Aviation Limited are having facilities to carry out heavy maintenance/overhaul on engines and com ponents. rapid not

Year Aircraft

2015 93

2016 66

2017 54

To promote the MRO activities in India to make it at par with global standards, the regulations related to approval of maintenance organizations, type training organizations and AME licensing have been made in line with world's best practices such as those followed by European Aviation Safety Agency (EASA) standards: This will help Indian MROs to obtain EASA/Federal Aviation Administration (FAA) approval and thereby attract the business from other countries: Given our technology and skill base, the government is keen to develop India as an MRO hub in Asia, attracting business from foreign airlines  Accordingly, the following provisions have been made in the Budget announcements for 2016-17 system

- The exemption shall be given 0 the basis Of list the tools and tool kits certified by the Directorate General of Civil Aviation (DGCA) approved Quality Managers of aircraft maintenance organisations
- iii) To enable economies of scale, the restriction of one year for utilization of free parts has been extended to three years duty
- i) MROs were required to provide proof of their requirements of parts, or orders from their client airlines. The process for the clearance of the parts has been brought in line with that of the tool kits for 2 one time certification by DGCA approved Quality Managers in MRO's:
- iv) To allow import of unserviceable parts including aircralt components like and landing gears by MROs for providing exchangeladvance exchange, the concerned notification has been revised to enable advance export of serviceable engines parts.
- v) Foreign aircraft brought to India for MRO work will be allowed to stay for the entire commercial flights during the The aircraft may, however, carry passengers in the flights at the beginning and end of the period in India. For beyond 6 months, DGCA's permission will be required: period. stay stay stay