Lok Sabha Question No. 2854 (UNSTARRED), answered on 2021-08-05
Subject: Growth of Domestic Aviation Market
Ministry: CIVIL AVIATION
Asked by: Kotha Prabhakar  Reddy, Manne Srinivas Reddy, Komati Reddy Venkat Reddy

2854.

## GOVERNMENT OF INDIA MINISTRY OF CIVIL A VIATION LOK SABHA UNSTARRED QUESTION NO.

2854 (To be answered on the 5th A ugust 2021)

## GROWTH OF DOMESTIC AVIATION MARKET

SHRI KOTHA PRABHAKAR REDDY SHRI MANNE SRINIVAS REDDY SHRI KOMATI REDDY VENKAT REDDY

Will the Minister 0f CIVIL AVIATION

be pleased to state:-

- S)e hether India"s domestic air passenger market is expected to double its size by 2030 and if so; the details thereof; and
- (b) the road map worked outlimplemented $0 far and the future action prepared agencies? along

## ANSWER

## Minister of State in the Ministry of CIVIL AVIATION

(GEN. (DR) V. K. SINGH (RETD))

- (a) Yes Sir: Before the Covid-19 pandemic, India was one of the fastest and in 2017-18 and 13.1% in 2018-19. Thereafter domestic pandemic.

Givectehe low traffic base in 2021-22, the domestic air passenger market is ebbs. The subsequent waves of Covid-19 (should happen) could have Iesser adverse impact than in the past as the number 0f fully-vaccinated people grows, traffic curbs are relaxed and the general demand to travel increases. they

- (b The measures taken by the Government to facilitate the growth of the civil aviation sector include:
- i Benefits under Emergency Credit Line Guarantee Scheme (ECLGS) 3.0

extended to civil aviation sector.

- iii. GST on Maintenance, Repairs and Overhaul (MRO) in aviation has been reduced from 18% to 5% with full Input Tax Credit from 1 April 2020.
- ii. Route rationalization done in Indian airspace in coordination with Indian Air Force for efficient airspace management, shorter routes and lower fuel consumption:
3. iv Exclusive air-links or 'Air Bubbles' have been established with 28 countries:
4. vi: Indian carriers have been encouraged to induct more wide body aircraft and freighters:
5. v: Private investments is facilitated in existing and new airports through the PPP route. being
- vii. Significant tax incentives and other benefits offered to aviation leasing companies located in GIFT City
7. AAI plans to offer land for Maintenance, Repairs and Overhaul (MRO)
8. viii, Agreements have been signed between Airports Authority of India (AAI) and Fiying Training Organisations for establishment of eight flying training academies at five AAi airports, namely Belagavi, Jalgaon, Kalaburgi, Khajuraho and Lilabari: These agreements provide for zero airport royalty charges and rationalised land rentals:
9. Conclude the disinvestment of Air India and Pawan Hans:
- ix. sector with zero airport royalty charges and rationalised land rentals at eight AAI airports. The government plans to continue with the above-mentioned measures. In addition it plans to carry out the following actions:
- ii. Enhance airport capacity by way of PPP projects both greenfield and brownfield.
- iv. Promote all modes of air travel heliports and water-aerodromes
13. iii, Facilitate commencement of new routes under the Regional Connectivity Scheme (UDAN):
14. V Enable 'examination on demand' for ab-initio pilots for their Commercial Pilot Licence.
15. vi: Enable e-governance at Directorate General of Civil Aviation (DGCA) and Bureau of Civil Aviation Security (BCAS) for most of their stakeholder interactions and internal processes.