Lok Sabha Question No. 1062 (UNSTARRED), answered on 2015-07-27
Subject: Indian Aviation Sector
Ministry: CIVIL AVIATION
Asked by: BHARTRUHARI MAHTAB, VIJAY KUMAR HANSDAK, SANJAY SHAMRAO DHOTRE, E. T. MOHAMMED BASHEER, INNOCENT, RAVNEET SINGH, G. HARI

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO. : 1062

(To be answered on the 27 th  July 2015)

## INDIAN AVIATION SECTOR

## 1062. SHRI BHARTRUHARI MAHTAB

SHRI VIJAY KUMAR HANSDAK

SHRI SANJAY DHOTRE

SHRI E.T. MOHAMMED BASHEER

SHRI INNOCENT

SHRI RAVNEET SINGH

SHRI G. HARI

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a)  whether  the  Indian  Aviation  Sector  including  Public  Sector companies/private airlines have been incurring heavy losses for the past few years and if so, the details thereof along with the reasons therefor;
- (b)  whether the airlines have been compromising safety of aircraft operations due to financial stress and if so, the details thereof;
- (c) whether the Government has conducted any audit in this regard and if so, the details thereof along with its outcome;
- (d)  whether  the  Government  has  also  reviewed  the  operating  and financial  performance  of  the  Indian  Aviation  Sector;  and
- (e) if so, the details thereof along with the steps taken or being taken by the Government to reduce the losses and rejuvenate the aviation sector?

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(Dr Mahesh Sharma)

- (a) :   The details of financial status of the scheduled domestic airlines  for

the year 2011-12, 2012-13 and 2013-14 is at Annexure-I to Annexure-III. The Indian Air Transport sector is largely driven by the global economic fortunes. It is a capital intensive sector with high operating cost, a large proportion of which is denominated in dollars, and hence affected by fluctuation of exchange rate. The airlines in particular are effected by the high cost of Aviation Turbine Fuel in India. (b) and (c): No, Madam. An assessment of impact of financial stress on safety of operation of private scheduled airlines has been made by Directorate General of Civil Aviation in the year 2014.  It has been found that all private airlines are in varying degree of financial stress. The findings of the audit have been individually discussed with the top management of the airlines and they have been asked to optimise their operations and reduce the financial burden without compromising the safety of aircraft operations and take corrective steps to remove the findings. (d) and (e): A Working Group was constituted under the Chairmanship of Secretary, Civil Aviation with Finance Secretary, Financial Services Secretary,  Petroleum  &  Natural  Gas  Secretary,  Director  General, Directorate General Foreign Trade and Joint Secretary, Civil Aviation as Members, to address factors causing stress in the Civil Aviation Sector and suggest solutions to the same.  Based on the recommendations of the Working Group, the Government increased FDI by foreign airlines to 49%,  permitted  airlines  to  import  ATF  on  user  basis,  External Commercial Borrowings upto $1 billion was permitted for the aviation sector.  To reduce the cost of ATF, which constitute 40-50% of the operating cost  of  Airlines,  the  Civil  Aviation  has  written  to  Chief Ministers of  all  states  to  reduce  VAT  on  ATF.

- *****

## A}INEXT'RE-1

| nmANCta SUMMARY OF SCHEDULED INDIAI\I CARRIERS DURING 2011-12 (RS. IN MILLION)   | nmANCta SUMMARY OF SCHEDULED INDIAI\I CARRIERS DURING 2011-12 (RS. IN MILLION)   | nmANCta SUMMARY OF SCHEDULED INDIAI\I CARRIERS DURING 2011-12 (RS. IN MILLION)   | nmANCta SUMMARY OF SCHEDULED INDIAI\I CARRIERS DURING 2011-12 (RS. IN MILLION)   |
|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
| CARRIER/AIRLINE                                                                  | OPERATINC REVENUE                                                                | OPERA-il-ING EXPEN"qES                                                           | OPERATTNG RESULT                                                                 |
| NATIONAI,, CARRIE RS                                                             | NATIONAI,, CARRIE RS                                                             | NATIONAI,, CARRIE RS                                                             | NATIONAI,, CARRIE RS                                                             |
| NACIL (Al+lC                                                                     | I 47, I 38.1                                                                     | 198139.9                                                                         | -51001.8                                                                         |
| AI EXPRESS                                                                       | 13778.2                                                                          | [zoos.s                                                                          | | -zzzs.t                                                                   |
| M                                                                                | 2e52.1                                                                           | | +roz.:;                                                                   | [ -t tso:                                                                        |
| rorAt                                                                            | | Ttoltos7                                                                  | 219245.7                                                                         | -55377.3                                                                         |
| PRIVATE SCHEDULED DOMESTIC AIRLINES                                              | PRIVATE SCHEDULED DOMESTIC AIRLINES                                              | PRIVATE SCHEDULED DOMESTIC AIRLINES                                              | PRIVATE SCHEDULED DOMESTIC AIRLINES                                              |
| JET AIRWAYS                                                                      | t47859.7                                                                         | 154447.4                                                                         | -654',7,7                                                                        |
| JET LITE (P) LTD.                                                                | 18731.7                                                                          | 21617.1                                                                          | -288:5.4                                                                         |
| GO AIR                                                                           | t s633.8                                                                         | r 6380.3                                                                         | -746.5                                                                           |
| SPICE JET                                                                        | 39432.6                                                                          | 45726.3                                                                          | -6293.7                                                                          |
| INDIGO                                                                           | 55524.0                                                                          | 56400.8                                                                          | -876 I                                                                           |
| TOTAL                                                                            | 277181.8                                                                         | 294531.t)                                                                        | -1 73 50. I                                                                      |
| GRAND TOTAL                                                                      | 441050.2                                                                         | 513777.ti                                                                        | -72727.40                                                                        |
| SOUNEg:- ICAO ATR FORM.EF FURNISHED B}'SCHEDULED INDIAN CARRIERS                 | SOUNEg:- ICAO ATR FORM.EF FURNISHED B}'SCHEDULED INDIAN CARRIERS                 | SOUNEg:- ICAO ATR FORM.EF FURNISHED B}'SCHEDULED INDIAN CARRIERS                 | SOUNEg:- ICAO ATR FORM.EF FURNISHED B}'SCHEDULED INDIAN CARRIERS                 |

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Y

| UENUIEN INDIA}.I CAR.RIERS DURIT\IG 2OI2-13 (RS.rryypuqN)_                                               | UENUIEN INDIA}.I CAR.RIERS DURIT\IG 2OI2-13 (RS.rryypuqN)_                                               | UENUIEN INDIA}.I CAR.RIERS DURIT\IG 2OI2-13 (RS.rryypuqN)_                                               | UENUIEN INDIA}.I CAR.RIERS DURIT\IG 2OI2-13 (RS.rryypuqN)_                                               |
|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
| CARRIER/AIRLINE                                                                                          | OPERATING REVENUE                                                                                        | OPERATING EXPENSES                                                                                       | OPERATTNG RESULT                                                                                         |
| NATIONAL CARRIERS                                                                                        | NATIONAL CARRIERS                                                                                        | NATIONAL CARRIERS                                                                                        | NATIONAL CARRIERS                                                                                        |
| NACIL (AI+IC combined)*                                                                                  | t60779.8                                                                                                 | 190646.3                                                                                                 | -29866.5                                                                                                 |
| AI EXPRESS**                                                                                             |                                                                                                          |                                                                                                          | 0.0                                                                                                      |
| ALLIANCE AIR*                                                                                            | 2193.9                                                                                                   | 3923.'1                                                                                                  | -1729.5                                                                                                  |
| TOTAL                                                                                                    | 162973.7                                                                                                 | 1945('9.7                                                                                                | -3 r 596.0                                                                                               |
| PRIVATE SCHEDULED DOMESTIC AIRLINES                                                                      | PRIVATE SCHEDULED DOMESTIC AIRLINES                                                                      | PRIVATE SCHEDULED DOMESTIC AIRLINES                                                                      | PRIVATE SCHEDULED DOMESTIC AIRLINES                                                                      |
| JET AIRWAYS                                                                                              | 170916.3                                                                                                 | 16969,0.5                                                                                                | li!.2:\.8                                                                                                |
| JET LITE (P) LTD.                                                                                        | r 9806.7                                                                                                 | 22274.7                                                                                                  | -2468.0                                                                                                  |
| GO AIR                                                                                                   | 22259.3                                                                                                  | 21408i.4                                                                                                 | 850.9                                                                                                    |
| SPICE JET*                                                                                               | 56006.8                                                                                                  | 58805;.0                                                                                                 | -279'8.2                                                                                                 |
| INDIGO                                                                                                   | 92030.8                                                                                                  | 84072,.9                                                                                                 | 795'.!.9                                                                                                 |
| TOTAL                                                                                                    | 3610r 9.9                                                                                                | 3562:,1,5                                                                                                | 4751t.4                                                                                                  |
| GRAND TOTAL                                                                                              | s23993.6                                                                                                 | 5508i11.2                                                                                                | -268,27.60                                                                                               |
| SOUNCP:- ICAO ATR FORM.EF FURNISHED Bv SCHEDULEI]I INDIAN CARRIERS * Frovisional figures **Not furnished | SOUNCP:- ICAO ATR FORM.EF FURNISHED Bv SCHEDULEI]I INDIAN CARRIERS * Frovisional figures **Not furnished | SOUNCP:- ICAO ATR FORM.EF FURNISHED Bv SCHEDULEI]I INDIAN CARRIERS * Frovisional figures **Not furnished | SOUNCP:- ICAO ATR FORM.EF FURNISHED Bv SCHEDULEI]I INDIAN CARRIERS * Frovisional figures **Not furnished |

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| FTNANCIA SUMMARY OF SCHEDULED INDIANI C:ARRIERS LulBINq 2oE-Y      | FTNANCIA SUMMARY OF SCHEDULED INDIANI C:ARRIERS LulBINq 2oE-Y      | FTNANCIA SUMMARY OF SCHEDULED INDIANI C:ARRIERS LulBINq 2oE-Y      | FTNANCIA SUMMARY OF SCHEDULED INDIANI C:ARRIERS LulBINq 2oE-Y      |
|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|
| (Frs rN MrLLr,oN                                                   | (Frs rN MrLLr,oN                                                   | (Frs rN MrLLr,oN                                                   | (Frs rN MrLLr,oN                                                   |
| - CARRIER/AIRLINE                                                  | OPERATING REVENUE                                                  | OPI]RATING EXPENSES I                                              | OPERAT]I{G RESULT IProfit (+)iLoss(-)l                             |
| NATIONAL CARRIERS                                                  | NATIONAL CARRIERS                                                  | NATIONAL CARRIERS                                                  | NATIONAL CARRIERS                                                  |
| AIR TNDIA*                                                         | 191703.80                                                          | 212941.60                                                          | -12237,8A                                                          |
| AI EXPRESS*                                                        | 23334.70#                                                          | 19799.80                                                           | 3534.90                                                            |
| ALLIANCE AIR*                                                      | 242309.                                                            | 4885.40                                                            | -2461.s0                                                           |
| TOTAL                                                              | I znqazlo                                                          | 237626.80                                                          | tr2ot 64140                                                        |
| PRt\iATE SCHEr.r*L I ED DOMESTIC AIRLINES                          | PRt\iATE SCHEr.r*L I ED DOMESTIC AIRLINES                          | PRt\iATE SCHEr.r*L I ED DOMESTIC AIRLINES                          | PRt\iATE SCHEr.r*L I ED DOMESTIC AIRLINES                          |
| W                                                                  | at:li:z:c.s                                                        | -l                                                                 | | -zB:.47 A5--_                                               |
| JET LrrE (P) LTp.                                                  | i 16909.94                                                         | 21455.96                                                           | -4546.02                                                           |
| CO AIR                                                             | 25323.79                                                           | 24226.81                                                           | 1096.98                                                            |
| SPICE JET                                                          | 63561,07                                                           | 73A36.82                                                           | -9475.7s                                                           |
| INDIGO                                                             | I1rr65.84                                                          | 108466.9r                                                          | 2698.93                                                            |
| AIR ASIA**                                                         |                                                                    |                                                                    |                                                                    |
| AIR COSTA                                                          | 486.00                                                             | 991.00                                                             | -505.00                                                            |
| TOTAL                                                              | 389771.69                                                          | 42926.00                                                           | -39478.31                                                          |
| GRAND TOTAL                                                        | 6A7n4.09                                                           | 666876.80                                                          | -59642.71                                                          |
| SOURCE:- ICAO ATR FORM-EF FURNISHED ey sCHgnU.ED_- INDIAN CARRIERS | SOURCE:- ICAO ATR FORM-EF FURNISHED ey sCHgnU.ED_- INDIAN CARRIERS | SOURCE:- ICAO ATR FORM-EF FURNISHED ey sCHgnU.ED_- INDIAN CARRIERS | SOURCE:- ICAO ATR FORM-EF FURNISHED ey sCHgnU.ED_- INDIAN CARRIERS |
| - rbM zol,+                                                        | - rbM zol,+                                                        | - rbM zol,+                                                        | - rbM zol,+                                                        |
| "tuNE SrrAzuXC WNH AIR INDIA -_                                    | "tuNE SrrAzuXC WNH AIR INDIA -_                                    | "tuNE SrrAzuXC WNH AIR INDIA -_                                    | "tuNE SrrAzuXC WNH AIR INDIA -_                                    |