Lok Sabha Question No. 741 (UNSTARRED), answered on 2019-02-07
Subject: Sustainable Growth of Indian Airlines
Ministry: CIVIL AVIATION
Asked by: VINCENT H PALA

## GOVERNMENT OF INDIA

UNSTARRED QUESTION NO. : 741 (To be answered on the February 2019) 7th

## MINISTRY OF CIVIL AVIATION LOK SABHA

## SUSTAINABLE GROWTH OF INDIA AIRLINES

## 741SHRI VINCENT HPALA

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) the details to ensure sustainable growth for the Indian aviation sector given the increasing reported losses by major carriers;
- (6) whether the Government plans to heip the air carriers to obtain unsecured credit line from OMCs (Oil Marketing Companies) as well as airports; and (c) if the details thereof?

## ANSWER

## Minister of State in the Ministry of CIVIL AVIATION

(Shri Jayant Sinha)

- (a) to (c): With a view to promote the growth of Indian aviation sector in a significant manner; the Government has released the National Civil Aviation Policy (CAP) 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, Maintenance Repairs and Overhaul services (MRO); General A In compliance of NCAP-20i6, broad steps taken are as under: Cargo,
- ii) Revival of un-served or under-served routes under RCS UDAN.
- i) Introduction of Regional Connectivity Scheme (RCS) UDAN (Ude Desh ka Aam Nagrik) with an aim to facilitatelstimulate Regional air connectivity by making it affordable
- iii) Introduction of a new category 'Schedule Commuter Operator' under Commercial Air Transport Operations.
- The requirement for 5/20 is modified and all airlines can commence international operations provided that they deploy 20 aircraft or 20% 0f total capacity (in terms of average number %f seats o all departure put together) whichever\_is higher for domestic operations.
- iv Rationalization Of Category-I routes under Route Dispersal Guidelines (RDGs) on the basis 0f criteria given in NCAP 2016.
- vi) Liberalization of domestic code share points in India within the framework

of Air Service Agreements (ASA) With a view to aid in modernization of the existing airports to establish a high standard and ease the pressure on the existing airports, 100% Foreign Direct Investment (FDI) 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 Servicel Domestic Scheduled Passenger Airline has been raised from 49% to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through Government 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% 0f their up capital and subject to the laid down conditions in the existing policy: Increasing the FDI limit for these aviation services shall not only encourage competition by lowering prices but shall also accord choice to consumers. help paid

Further, the airline industry is a dynamic industry which requires continuous adjustment according to global & domestic needs: The Government has constantly been responding to industry conditions and undertaking specific measures to facilitate and enable growth of the sector Steps also include reduction of Central Excise Duty applicable on Aviation Turbine Fuel (ATF) from 14% to 11% W.e.f: Ilth October 2018 and rationalization of GST provisions, with a view to revive the airline industry.