Lok Sabha Question No. 2582 (UNSTARRED), answered on 2022-12-22
Subject: Growth of Aviation Sector
Ministry: CIVIL AVIATION
Asked by: C.N. Annadurai, Ganesan Selvam, Gajanan Chandrakant Kirtikar, Manjulata Mandal, Dhanush M Kumar

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO. : 2582

(To be answered on the 22 nd  December 2022)

## GROWTH OF AVIATION SECTOR

## 2582. SHRI C.N. ANNADURAI

SHRI SELVAM G.

SHRI GAJANAN KIRTIKAR

SHRIMATI MANJULATA MANDAL

SHRI DHANUSH M. KUMAR

## Will the Minister of CIVIL AVIATION

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

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

- (a) to (f) The details of the domestic growth rate registered in the Indian Aviation sector during the last three years is given below:

| Year   | Domestic Passengers (in millions)   | Percentage Growth   |
|--------|-------------------------------------|---------------------|

be pleased to state:-

- (a) the growth rate of the Indian Aviation sector during each of the last three years;
- (b)  the  estimated  number  of  direct  employment  in  the  aviation  and aeronautical  manufacturing  sector  in  the  country;
- (c) whether the revenue earned by the aviation sector is not in tune with growth attained by the sector and if so, the details thereof and the reasons therefor;
- (d)  whether  the  Airports  Authority  of  India  has  conducted  any study/assessment regarding the growth in aviation sector in the country during the next three years and if so, the outcome of the assessment;
- (e) the percentage of growth of individual airlines and the sector as a whole during the last three years along with the revenue earned by the Government from these airlines during the said period; and
- (f) the other steps taken by the Government for the development of Indian
- aviation sector;

2019-20                  275                                -0.3% 2020-21                  105                               -61.7% 2021-22                  167                                58.5 %

The direct employment in the aviation and aeronautical manufacturing sector is around 2,50,000 employees. This includes pilots, cabin crew, engineers, technicians,  airport  staff,  ground  handling,  cargo,  retail,  security, administrative  and  sales  staff  etc.

The all-India passenger throughput growth as projected by the Airports Authority of India for the next three years is provided as under: Year                                 Passenger (in million) 2023-24                                     371 2024-25                                     412 2025-26                                     453

Hospitality and aviation have been worst affected during COVID which has impacted revenue and profitability of the stakeholders. The revenue earned during the last three years by airlines, airports, ground handling and cargo is attached at ANNEXURE.

The percentage growth of the airline sector in 2019-20 as compared to 2018-19 was 23% (approx) and 2020-21 the growth was negative at -57% (approx). However, the growth in Financial Year 2021-22 as compared to 2020-21 was 47% (approx).

Revenue (approx.) earned by the Airports Authority of India (AAI) during the last three years is as follows: Financial Year                Amount (Rs in crore) 2019-20                           12,837 2020-21                             4,867 2021-22                             6,841

Measures being taken by Government for increase growth of aviation sector include the following: (i)  AAI  and  other  Airport  Developers  have  targeted  capital  outlay  of approximately Rs. 98,000 crore in airport sector in the next five years for expansion  and  modification  of  existing  terminals,  new  terminals  and strengthening  of  runways,  among  other  activities. (ii) The Government of India has accorded 'In-Principle' approval for setting up of 21 Greenfield Airports namely, Mopa in Goa, Navi Mumbai, Shirdi and Sindhudurg  in  Maharashtra,  Kalaburagi,  Vijayapura,  Hassan  and Shivamogga in Karnataka, Dabra (Gwalior) in Madhya Pradesh, Kushinagar and Noida (Jewar) in Uttar Pradesh, Dholera and Hirasar in Gujarat, Karaikal in Puducherry, Dagadarthi, Bhogapuram and Oravakal (Kurnool) in Andhra Pradesh, Durgapur in West Bengal, Pakyong in Sikkim, Kannur in Kerala and Donyi Polo, Itanagar in Arunachal Pradesh across the country.

(iii) Under Regional Connectivity Scheme (RCS) - UdeDesh ka Aam Nagrik (UDAN), 453 routes connecting 70 airports (including nine heliports and two water aerodromes) have been operationalized. (iv) Goods and Services Tax (GST) rate has been reduced from 18% to 5% for domestic Maintenance, Repair and Overhaul (MRO) services. (v) A conducive aircraft leasing and financing environment has been enabled. (vi) The domestic capacity of the airlines has been restored to full, as in preCOVID period. (vii) Improvement in air navigation infrastructure at airports is being carried out. (vii) The domestic capacity of the airlines has been restored to full, as in during pre-Covid times. (viii) Improvement in air navigation infrastructure at Indian airports is being carried out.

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