Lok Sabha Question No. 4798 (UNSTARRED), answered on 2025-08-21
Subject: Growth of Indian Domestic Aviation Market
Ministry: CIVIL AVIATION
Asked by: Dr. Pradeep Kumar Panigrahy

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION

## LOK SABHA

UNSTARRED QUESTION NO. : 4798

( TO BE ANSWERED ON THE  21st August 2025 )

## GROWTH OF INDIAN DOMESTIC AVIATION MARKET

4798.    DR. PRADEEP KUMAR PANIGRAHY Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a)  whether  the  Government  is  aware  that  despite  a  7%  year-on-year  growth  in  the  Indian domestic  aviation  market,  there  has  been  a  contraction  in  airline  capacity  in  July  2025  as compared to both June 2025 and July 2024, raising concerns about the financial health of Indian airlines and if so, the details thereof;
- (b) the specific policy interventions being planned by the Government to ensure the financial stability  and  promote  healthy  competition  among  Indian  airlines  in  view  of  the  industry's recurring financial volatility;
- (c)  whether the Government can provide data on the average airline debt, profitability and operational costs during the last financial year (2024-25) and if so, the details thereof; and (d) whether any regulatory reforms are being considered to prevent airline failures and protect consumer interests in a highly competitive market and if so, the details thereof?

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION      (Shri Murlidhar Mohol)

- (a) : As per the information provided by Scheduled Indian Airlines for Scheduled Domestic and  International  operations,  no  contraction  in  airlines  capacity  (i.e  ASKM)  has  been observed.;;
- (b) to (d) :  With the repeal of Air Corporation Act in March 1994, the Indian domestic aviation has been deregulated. The financial and operational decisions, including resource mobilization, and  debt  restructuring,  are  managed  by  the  respective  airlines  based  on  commercial considerations. ;

;

Under  the  aegis  of  the  National  Civil  Aviation  Policy  2016,  the  Government  creates  a conducive ecosystem for the sector to grow through simplified regulations and by enhancing the ease of doing business.The Government proactively addresses the needs and challenges of the Indian airline sector, to promote its sustainable growth and development. Initiatives such as  UDAN  Scheme  have  improved  the  operational  viability  of  airlines  on  regional  routes through financial support, thereby enabling cost-effective operations.

;

The details regarding Debt, Profitability and operational cost of major scheduled carriers for the Financial year 2024-2025 is at Annexure.

******

## Annexure

## Provisional figures (in millions ₹) of DEBT, P&L before tax and Operating cost of major scheduled Airlines in Financial year 2024-2025

| Airlines          | Debt     | Profit/Loss before tax   | Operating Cost   |
|-------------------|----------|--------------------------|------------------|
| AIR INDIA         | 2,68,796 | -38,902                  | 6,17,770         |
| AIR INDIA EXPRESS | 6,175    | -56,782                  | 2,04,006         |
| AKASA AIR         | 785      | -19,834                  | 60,905           |
| INDIGO            | 6,70,884 | 75,875                   | 7,65,223         |
| SPICEJET          | 8,860    | -581                     | 48,897           |