Government Measures to Revive Aviation Industry

The Minister of State for Civil Aviation Shri K.C Venugopal informed Lok Sabha today that a working group was constituted under the Chairmanship of Secretary, Civil Aviation with Finance Secretary, Financial Services Secretary, M/o Petroleum & Natural Gas DGFT and Joint Secretary, Civil Aviation to discuss the factors causing stress in civil aviation and to suggest solutions to the same. Based on the recommendation of the Working Group , the Government has taken several measures to revive the aviation industry and ensure long term viability of the sector.

(i) Director General of Foreign Trade has allowed direct import of ATF by airlines on actual user basis.

(ii) FDI by foreign airlines in the domestic scheduled and non scheduled carrier has been permitted upto 49 percent of their paid up capital.

(iii) ECB upto $ USD 1 billion has been permitted for the airlines to meet their working capital requirement.

(iv) Operation in domestic sector has been deregulated. As such airlines are free to operate anywhere in the country subject to compliance of Route Dispersal Guidelines.


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