Lok Sabha Question No. 529 (UNSTARRED), answered on 2021-02-04
Subject: Poor Balance Sheet of Aviation Sector
Ministry: CIVIL AVIATION
Asked by: Geetha Viswanath Vanga, Kotha Prabhakar  Reddy

529.

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO. : 529 (To be answered on the February 2021) 4th

## POOR BALANCE SHEET OF AVIATION SECTOR

SHRIMATI VANGA GEETHA VISWANATH

SHRI KOTHA PRABHAKAR REDDY

Will the Minister of CIVIL AVIATION

## ANSWER

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

(Shri Hardeep Singh Puri)

(a) to (d): Government is aware of the impact of the Covid crisis on airlines. Regular stakeholders consultations are held and required policy decisions are taken.  Further, airlines are commercial entities which prepare their business plan on the basis of their own market assessment and liabilities: Mobilizing financial resources and ensuring efficient operations as per business are the responsibility of the airline: plan

The Ministry of Civil Aviation helps the airlines providing a congenial environment to function. The steps taken to facilitate Civil Aviation in India includes: by

- I, Provide airport infrastructure through Airports Authority of India (AAI) and the private operators.
- III; Regulate the aviation industry through Directorate General of Civil Aviation (DGCA) to ensure safety standards:
- II Provide an efficient Air Navigation System in the Country
- IV. Coordinate with all stakeholders to resolve their issues:

be pleased to state: -

- (a) whether Indian carriers will continue to have a poor balance sheet in FY22 including domesticlinternational air passenger traffic;
- (c) the steps being taken to such carriers finacially including Air India; help
- (b) if so, the details thereof, carrier and route-wise as compared to the last five years and the reasons therefor;
- period?
- V. Provide Viability Funding (VGF) and other concessions to selected airline operators under Regional Connectivity Scheme (RCS) UDAN (Ude Desh ka Aam Nagrik) as per the scheme document: Gap
- VI: Reduction of Central Excise Duty applicable 0n ATF from 14% to 11% w.e.f: Ilth October 2018 and rationalization of Goods and Services Tax (GST) provisions, with a view to revive the airline industry:
- (RDGs) on the basis of criteria given in NCAP 2016.
- IX. Liberalization of domestic code share points in India within the framework of Air Service Agreements (ASA):
- VIII The requirement for 5/20 is modified and all airlines can commence international operations provided that deploy 20 aircraft or 20% of total capacity (in terms of average number of seats on all departure put together) whichever is higher for domestic operations they
- XWith a view to modernize existing airports so 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 also facilitate the development of domestic aviation infrastructure. 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 would be allowed to invest in capital of Indian companies operating scheduled and non-scheduled air transport services up t0 the limit of 49% 0f their paid up capital; Such investment is subject to the condition; inter alia, 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.

XI Also Government of India provides some financial assistance to Air India.

As per information made available by the scheduled Indian carriers, the financial statement for the period of financial year 2015-16 to 2019-2020 (provisional) is attached as Annexure-I.

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