Lok Sabha Question No. 2708 (UNSTARRED), answered on 2018-12-27
Subject: Disinvestment of Air India
Ministry: CIVIL AVIATION
Asked by: ANANDRAO  ADSUL, SHIVAJI ADHALRAO PATIL, ABHIJIT MUKHERJEE, VINAYAK BHAURAO RAUT, RAJAN BABURAO  VICHARE, KUNWAR PUSHPENDRA SINGH CHANDEL, DHARMENDRA YADAV, SHRIKANT EKNATH SHINDE

## MINISTRY OF CIVI AVIATION LOK SABHA 2708 December 2018)

## DISINVESTMENT OF AIR INDIA

(To be answered On the

SHRI ANANDRAO ADSUL PATIL SHIVAJIRAO SHRI ADHALRAO SHRI ABHIJIT MUKHERJEE SHRI VNNAYAK BHAURAO RAUT SHRI RAJAN VICHARE SHRI KUNWAR PUSHPENDRA SINGH CHANDEL SHRI DHARMENDRA YADAV DR. SHRIKANT EKNATH SHNDE

2708.

Will the Minister of CIVIL AVIATION

be pleased to state:-

- proposal to Air India; privatise
- 8o,the present status in the natter; delayed due to clash ittee $f Farliament; mutual get
- the members of the Standing Com among
- problems;
- over the last fivc years; of air passenger aware that inspite of the growth growth
- regard; of the country is growing at a (g) whether Civil Aviation industy rapid
- growing aviation business huge
- 9beingsiaken by the Government in this pace and is
- considered the third largest domestic that India has the to become a talent and low labour cost; and potential repair regard?

## ANSWER

Minister of State in the Ministry 9f CIVIL AVIATION

(Shri Jayant Sinha)

to the disinvestment of Air viz. Air India Eagincering Services Limited

.

- (AIESL); Air India Air Transport Services Limited (AIATSL) and Airline Allied AISAM inter-alia, approved the contours for sale of subsidiaries of Al and directed to expedite the sale of AIATSL. has,
- (e): The spiraling cost 0f Aviation Turbine Fuel (ATF); the global economic slow down, low yields due to intense competition and the consequent widening gap between revenue and expenses have contributed to a downturn in the airline industry. Over the years; tke operational costs for airlines have gone up mainiy due to the increase in fuel prices and the depreciation of Rupee:
- airiine industry and has taken several measures; ineiuding reduction of Central W.e.f: term viability and health &f the Civil Aviation sector. long

(h) Madam. Yes;

- (g): Madam. According to International Air Transport Association (IATA), India is set to become the third largest aviation market in the world by 2023. Yes,
- (i): Given our technology and sicill base, the government is keen to develop India as an MRO hub in Asia, attracting business fror foreign airlines: Accordingly, the following provisions were made in the Budget announcements for 2016-17 :
- duty; The exemption shall be given on: thie basis of list the tools and tool kits certified by the Directerate General of Civil Aviation (DGCA) approved Quality Managers of aircraft maintenance organisations:
- ii) MROs were required to provide of their requirements 0f parts,or orders from their client airlines. The process for the clearance of the parts has been brought in line with that of the tool kits for a one time certification by DGCA approved Quality Managers in MROs: proof
- free parts #as been extended to tbree years:
- engines and landing gears by MROs for providing exchangeladvance exchange, the concerned notification has been revised to enable advance export of serviceable parts.
- v) for the entire undertakes no commercial flights during the stay period. The aircraft may, period in Jadia. For beyond 6 months; DGCA's permission will be required: stay stay stay

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## ANNEXURE IOLSUQ 2708

Scheduled Domestic and international passengers carried by   scheduled Domestic and foreign carriers

| Passengers in crore   | Passengers in crore                                        | Passengers in crore                                                                   | Passengers in crore                       | Passengers in crore         |
|-----------------------|------------------------------------------------------------|---------------------------------------------------------------------------------------|-------------------------------------------|-----------------------------|
| Year                  | Domestic passengers carried by scheduled domestic Airlines | International Passengers Carried by scheduled Indian Foreign carriers To & From India | Total Passenger (Domestic+ International) | % Growth over previous year |
| 2012-13               | 5.79                                                       | 4,03                                                                                  | 9.82                                      |                             |
|                       |                                                            | 4.31                                                                                  | 10.38                                     | 5.70                        |
| 2013-14               | 6.07                                                       |                                                                                       | 11.58                                     |                             |
| 2014-15               | 7.01                                                       | 4.57                                                                                  |                                           | 16.58                       |
| 2015-16               | 8.52                                                       | 4.98                                                                                  | 13.50                                     |                             |
|                       | 10.38                                                      | 5.47                                                                                  | 15.85                                     | 16.41                       |
| 2016-17               |                                                            | 6.06                                                                                  | 18.39                                     | 16.03                       |
| 2017-18               | 12.33                                                      |                                                                                       |                                           |                             |

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