Lok Sabha Question No. 4328 (UNSTARRED), answered on 2020-03-19
Subject: Increase in Revenue in Civil Aviation Sector
Ministry: CIVIL AVIATION
Asked by: Pashupati Nath Singh

## GOVERNMENT OF INDIA

UNSTARRED QUESTION NO. :

## MINISTRY OF CIVIL AVIATION LOK SABHA

4328

(To be answered on the March 2020) I9th

## INCREASE IN REVENUE IN CIVIL AVIA TION SECTOR

## 4328. SHRI PASHUPATI NATH SINGH

## Will the Minister of CIVIL AVIATION

- (b) if s0, the field of said initiative;

be pleased to state:-

- (a) whether the Government has taken any initiative to increase the revenue in civil aviation sector;
- (c) the details of the sector in which the Government has succeeded in generating more revenue after the implementation of said initiatives; fieldwise;
- (e) the reaction of the Government in this regard?
- (d) the amount %f revenue generated more in comparison to the last year as a result of the said success, sector-wise; and

## ANSWER

Minister of State (IC) in the Ministry of CIVIL A VIATION

(Shri Hardeep Singh Puri)

(a) & (b) Sir. The initiatives taken by the Government to increase the revenue in civil aviation sector and to strengthen it; include:Yes,

Provide airport infrastructure through Airports Authority of India (AAI) and the private operators which helps airlines add more flights and hence revenue.

ii) Provide an efficient Air Navigation System in the Country that reduces congestion in air and on ground and hence reduces fuel consumption:

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

iii) Provide Viability Funding and other concessions to selected airline operators under Regional Connectivity Scheme (RCS) UDAN (Ude Desh ka Aam Nagrik) as per the scheme document Gap

- v) Rationalization of Goods and Services Tax provisions
2. vii) The requirement for 5/20 is modified and all airlines can commence

vi) Rationalization Of Category-[ routes under Route Dispersal Guidelines on the basis of criteria given in National Civil Aviation Policy 2016.

international operations provided that they deploy 20 aircraft or 20% of total capacity (in terms of average number of seats 0n all departure put together) whichever is higher for domestic operations

- ix) Foreign Direct Investment (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 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 up capital; Such investment is subject to the condition, inter alia, that Scheduled and NonScheduled Operator's Permit would be granted to a company the substantial ownership and effective control of which is vested in Indian\_ nationals. paid only

Liberalization of domestic code share points in India within the framework of Air Service Agreements.

- (c) to (e) The Government keeps a constant watch on the functioning of the civil aviation sector. However; the Ministry of Civil Aviation does not carry out detailed analysis of individual companies: The Ministry, however, reviews the functioning of Public Sector Undertakings under the Ministry of Civil Aviation in detail. The details of the revenue generated by AAI, Air India Ltd (AIL), Air India Express Limited (AIXL); Air India Air Transport Services Ltd: (AIATSL) Air India Engineering Services Ltd (AIESL) and Airline Allied Service Ltd (AASL) during the last two years are as under:

|             |   2017-18 |   2018-19 |
|-------------|-----------|-----------|
| AAI         |     12977 |     14133 |
| (ii) AIL    |     23901 |     26431 |
| (iii) AIXL  |      3920 |      4202 |
| (iv) AIATSL |       669 |       707 |
| (v) AIESL   |       741 |      1206 |
| (vi) AASL   |       602 |       836 |

(Rs. in crores)