Lok Sabha Question No. 3027 (UNSTARRED), answered on 2020-03-12
Subject: Growth of Domestic Air Passenger
Ministry: CIVIL AVIATION
Asked by: Bidyut Baran Mahato, Shrirang Appa Barne, Sudheer Gupta, Gajanan Chandrakant Kirtikar, Sanjay Sadashivrao Mandlik

## GOVERNMENT OF INDIA

UNSTARRED QUESTION NO. : 3027

## MINISTRY OF CIVIL AVIATION LOK SABHA

(To be answered on the March 2020) 12th

## GROWTH OF DOMESTIC AIR PASSENGER

3027.

SHRI BIDYUT BARAN MAHATO

SHRI SHRIRANG APPA BARNE

SHRI SUDHEER GUPTA

SHRI GAJANAN KIRTIKAR

SHRI SANJAY SADASHIV RAO MANDLIK

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether India's domestic air passenger traffic growth slowed from 18.6
- (b) if s0, the details thereof and the reasons for such slow growth;
- per cent in 2018 to 3.74 per cent in 2019;
- (c) whether the Government has signed agreements with other countries to details thereof; and
- (d) the steps taken/being taken by the Government to boost the domestic air passenger traffic growth in the country?

## ANSWER

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

(Shri Hardeep Singh Puri)

(a) to (d): India 's domestic air pax number increased to 143,736,256 in the Calendar Year 2019 from 138,698,284 in the previous year i.e: 2018. Growth Rate(%) over previous year in 2019 is 3.63 against 18.77 of corresponding period of 2018. Reasons for slow growth include the following:

(ii) Indirect effect of decline in global aviation demand.

() Reduction in travel demand due to overall global economic scenario.

(iii) Short term impact of grounding of aircraft of a Scheduled airline operator during transition period:

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 taken by this Ministry to civil aviation sector include: help
- TI Provide an efficient Air Navigation System in the Country
- I Provide airport infrastructure through Airports Authority of India and the private operators
- III; Regulate the aviation industry through Directorate General of Civil Aviation to ensure safety standards.
- interactions.
- IV. Coordinate with all stakeholders to resolve their issues through regular
- V. 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
- VII; Reduction of Central Excise Duty applicable on ATF from 14% to 11% w.e.f: Ilth October 2018.
- VI Provide financial assistance to Air India as per the approved Plan:
- VIII Rationalization of Goods and Services Tax provisions.
- X The requirement for 5/20 is modified and all airlines can commence international operations provided that they deploy 20 aircraft or 20% of total capacity (in terms of average number Of seats o all departure put together) whichever is higher for domestic operations.
- IX, Rationalization of Category-I routes under Route Dispersal Guidelines on the basis of criteria given in National Civil Aviation Policy 2016.
- XI: Liberalization of domestic code share points in India within the framework of Air Service Agreements.
- 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 facilitate the development of domestic aviation infrastructure: FDI for Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline has been allowed upto 49% under automatic route: For NonResident 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 that Scheduled and Non-Scheduled Operator's Permit would be granted only to a company the substantial ownership and effective control of which is vested in Indian nationals. paid alia,

Airports Authority %f India (AAI)\_is the service provider of air navigation services(which includes air traffic services) has the coordination with neighbouring countries for providing seamless air navigation services