Lok Sabha Question No. 153 (STARRED), answered on 2019-11-28
Subject: Civil Aviation Companies
Ministry: CIVIL AVIATION
Asked by: Dulal Chandra Goswami

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION

STARRED QUESTIQN NO. : 153

## LOK SABHA

(To be answered on the November 2019) 28th

## CIVIL AVIATION COMPANIES

## *153. SHRI DULAL CHAND GOSWAMI

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) the number of civil aviation companies in the country facing financial crisis during the last three years;
- (c) whether the Government proposes to help such companies in the interests of the people;
- (b) the detaiis of air services provided by these companies during the said period;
- (d) if so, the details thereof; and
- (e) if not, the reasons therefor?

## ANSWER

Minister of State (IC) in the Ministry of CIVIL AVIATION

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

#****

## STATEMENT IN RESPECT OF LOK SABHA STARRED QUESTION NO\_ 153 REGARDING "CIVIL AVIA TION COMPANIES TO BE ANSWERED ON 28.11.2019

- (a) to (b) : The financial performance of Scheduled Domestic Airlines for last three years is attached as Annexure-I. Details of air passengers (Domestic and International) carried by Scheduled Domestic Airlines are attached as Annexure-IL.
- (c) to (e): There is no specific scheme/proposal to provide financial assistance to loss making private airlines, as the management of the company including its finance is the internal matter of civil aviation companies: Each airline prepares its business plan on the basis of its own market assessment and iiabilities. Mobilizing financial resources and ensuring efficient operations as per business plans are the responsibility of the airline. Government is conscious of financial difficulties faced by the Airline Companies. Accordingly, the Government has constantly been responding to industry conditions and undertaking specific measures to facilitate and enable growth of the sector: The major steps by this Ministry to help civil aviation include: I. Provide airport infrastructure through Airports Authority of India (AAI)
- II Provide an efficient Air Navigation System in the Country
- and the private operators:
- III; Regulate the aviation industry through Directorate' General of Civil Aviation (DGCA) to ensure safety standards.
- V. Provide Viability Funding (VGF) and other concessions to selected airline operators under Regional Connectivity Scheme (RCS) UDAN (Ude Desh ka Aam Nagrik) as per the scheme document: Gap

IV. Coordinate with all stakeholders to resolve their issues through regular interactions.

- VI; Provide financial assistance to Air India as per the approved Plan:

VIII Rationalization of Goods and Services Tax (GST) provisions;

VII Reduction of Central Excise Duty applicable on ATF from 14% to 11% w.e.f: Ilth October 2018.

- IX, Rationalization of Category-I routes under Route Dispersal Guidelines (RDGs) on the basis of criteria given in NCAP 2016.
- XI: Liberalization of domestic code share points in India within the framework of Air Service Agreements (ASA):
- X The requirement for 5/20 is modified and all airlines can commence international operations provided that 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. they
- XII.With a view to modernize existing airports 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 also facilitate the development of domestic aviation infrastructure: FDI for Scheduled Air Transport Servicel 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 would 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  Such investment is subject to the condition, inter alia, that Scheduled and NonScheduled Operator's Permit would be granted only to a company the substantial ownership and effective control of which is vested in Indian nationals. paid

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