Lok Sabha Question No. 1749 (UNSTARRED), answered on 2017-12-28
Subject: Profit/Loss made by Airlines
Ministry: CIVIL AVIATION
Asked by: KAPIL MORESHWAR PATIL, (ADV.) JOICE GEORGE

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO. : 1749 (To be answered on the December 2017) 28th

## PROFITILOSS MADE BY AIRLINES

1749

SHRI KAPIL MORESHWAR PATIL ADV. JOICE GEORGE

Will the Minister of CIVIL AVIATION

be pleased to state: -

- (a) the details of profits earned/losses incurred by public and private airlines during the last three years and the current year; airline and year-wise;
- (c) the steps taken by the Government to expand the development of aviation sector and improve the functioning of airlines?
- (6) whether the Government has conducted' any study about the cause of this situation and if s0, the details thereof;and

## ANSWER

Minister of State in the Ministry of CIVIL AVIA TION

(Shri Jayant Sinha)

- (a): The financial results of all scheduled Indian carriers as provided by them for the last three years i.e 2014-15, 2015-16 & 2016-17 are enclosed at Annexure I.
- (b) (c):No such study has been carried out by the Government: However, with a view to promote the growth of Indian Aviation sector in a significant manner, the Government 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 0f various aviation subsectors; i.e Airlines,\_Airports, Cargo, Maintenance Repairs and Overhaul services (MRO); General Aviation; Aerospace Manufacturing,Skill Development, etc In compliance of NCAP-2016, broad steps taken are as under:
- iii) Introduction of a new Category 'Schedule Commuter Operator' under Commercial Air Transport Operations:
- i) Introduction of Regional Connectivity Scheme (RCS) with 4 aim to facilitate/stimulate Regional air connectivity by making it affordable. ii) Revival of un-served or under-served routes under RCS.
- iv) Rationalization of Category-I routes under Route Dispersal Guidelines

(RDGs) on the basis 0f criteria given in NCAP 2016

'

v) The requirement of 5 years and 20 aircrafts forunternational operation has been modified to 0 years and 20 aircrafts or 20% %f the total capacity (in terms of average number of seats on all departure together) whichever is higher for domestic operations Yi) Liberslization %f domestic sodewhthre view to aid in modernization 0f the existing airports to establish a high stendard and help ease the pressure o the existing airports, 100% foreigu Direct Investment (FDI) under automatic route has now been allowed in Brownfield Airport projects:. This move would also serve in further the domestic aviation infrastructure Further, FDI limit for to 49% permitted under automatic route and FDI beyond 49% Fhrough Governmeme continue to be allowed under automatic route. However; foreign airlines would continue to be allowed to invest in capital of Indian companies 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 shaicao competition by lowering but shall also accord choice to only encourage consumers: put points paid prices

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