Lok Sabha Question No. 1465 (UNSTARRED), answered on 2017-03-09
Subject: Revival of Aviation Sector
Ministry: CIVIL AVIATION
Asked by: C.S. PUTTARAJU

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTIQN NO. 8 1465 (To be answered O the 9th March 2017)

## REVIVAL OF AVIATION SECTOR

1465.

SHRI C.S. PUTTA RAJU

## Will the Minister of CIVIL AVIATION

- (a) whether airlines in the country are suffering losses;
- (c) whether Government has worked out certain action plan to revive this sector; if s0, the details thereof; and

.

be pleased to state:-

- (b) if the details of profitlloss made by various airlines during the last three years and the current year airlinelyearwise; SO,
- (d) the steps taken by the Government in this regard?

## ANSWER

Minister 0f State in the Ministry of CIVIL AVIATION

(Shri Jayant Sinha)

- (a) & (b): Details of financial performance (operating revenue, operating expenses & operating result) of scheduled Indian Carriers for the years 201213, 2013-14, 2014-13 and 2015-16 is Annexed at Annexure-I (as given by concerned airlines).
- (c) (d): The Government with a view to promote the growth of Indian Aviation sector in a significant manner has released the National Civil Aviation Policy (NCAP) 2016 on 15.06.2016. The aim of the Government is to provide an ecosystem for the harmonised growth of various aviation subsectors; i.e Airlines, Airports; Cargo, Maintenance Repairs and Overhaul services (MRO), General Aviation, Aerospace Manufacturing, Skill Development, etc. The broad key features 0f the NCAP are as under: i) Viability Funding (VGF) for operation under Regional Connectivity Gap
- i) Revival of un-served or under-served routes under RCS
- Scheme (RCS):
- iii) Introduction of a new Category 'Schedule Commuter Operator' under Commercial Air Transport Operations.
- iv) Rationalization 0f Category-I routes under Route Dispersal Guidelines (RDGs) on the basis of criteria given in NCAP 2016.

' ` ` .

- vi) Liberalization of domestic code share points in India within the framework of Air Service Agreements (ASA)
- v) The requirement of 5 years and 20 aircrafts for international operation has been modified to 0 years and 20 aircrafts or 20% of the total capacity (in terms of average number of seats 0 all departure together) whichever is higher for domestic operations: put

With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports; 10% Foreign Direct Investment (FDD) under automatic route has now been allowed in Brownfield Airport projects  This move would also serve in further developing the domestic aviation infrastructure Further; FDI limit for Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline FDI up to 49% permitted under automatic route and FDI beyond 49% will continue to be allowed under automatic route; However ; foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and non-scheduled air transport services Up;to the limit of 49% of their up capital and subject to the laid down conditions in the existing policy. increasing the FDI limit for these aviation services sha]l not encourage competition by lowering prices but shall also accord choice to consumers. paid only

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