Steps taken by the Government to overcome the Operating Cost for Civil Aviation sector

The details of major steps taken by the Government to overcome the operating cost for civil aviation sector, inter-alia, are as follows:


  1. Provide support to airlines through various policy measures.
  2. Provide airport infrastructure through Airports Authority of India and the private operators.
  3. Promotion of private investments in existing and new airports through the PPP route
  4. Route rationalization in the Indian airspace in coordination with Indian Air Force for efficient airspace management, shorter routes and lower fuel consumption
  5. Goods and Services Tax (GST) rate reduced to 5% from 18% for domestic Maintenance, Repair and Overhaul (MRO) services.
  6. As on date, exclusive air-links or Air-Bubbles have been established with 28 countries with the objective of restarting international passenger services while regular international flights remain suspended due to COVID-19.
  7. A calibrated increase of the domestic aviation.
  8. Stipulating fare-band for the airlines
  9. A conducive aircraft leasing and financing environment has been enabled.
  10. Benefits under Emergency Credit Line Guarantee Scheme (ECLGS) 3.0 have been extended to civil aviation sector.

This information was given by General (Retd.) Dr.V.K. Singh, Minister of State in the Ministry of Civil Aviation in a written reply to Priyanka Chaturvedi in Rajya Sabha today.


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