New Delhi: Airlines and Airports in India suffered an estimated loss of about Rs 19,564 and Rs 5,116 crore respectively in 2020-21 due to the Covid-19 pandemic, the Union Government informed Rajya Sabha on Monday. "The aviation sector in India has been affected adversely due to severe disruption caused by the COVID-19 pandemic. The estimated loss incurred by Airlines and Airports in India in the financial year 2020-21 is approximately Rs.19,564 crore and Rs. 5,116 crore respectively," Minister of State, Civil Aviation General (retd) V K Singh stated in a written reply.
Airlines, airports suffered loss of Rs 19564 crore and Rs. 5116 crore respectively in pandemic: Govt
"The scheme provides for 100% guarantee to member lending institutions in respect of eligible credit facility extended by them to their borrowers in the Civil Aviation (scheduled and non-scheduled airlines, chartered flight operators, air ambulances, airports and ground handling units) sectors subject to the conditions mentioned therein," added Singh.
Airlines, airports suffered loss of Rs 19564 crore and Rs. 5116 crore due to pandemic: Govt
He further stated that the government has extended the Emergency Credit Line Guarantee Scheme to the airlines. "The scheme provides for 100% guarantee to member lending institutions in respect of eligible credit facility extended by them to their borrowers in the Civil Aviation (scheduled and non-scheduled airlines, chartered flight operators, air ambulances, airports, and ground handling units) sectors subject to the conditions mentioned therein," added Singh.
He further stated that the Civil Aviation Ministry has restored scheduled domestic flights from October 18, 2021, without any capacity restriction. Singh also said that the Directorate General of Civil Aviation has issued a circular on March 8, 2022, for the resumption of international passenger flights to and from the country from March 27. "The airfares are not regulated by the Government. Under the provisions of Sub Rule(1) of Rule 135 of the Aircraft Rules, 1937, every air transport undertaking engaged in scheduled air services is required to establish a tariff having regard to all relevant factors, including the cost of operation, characteristics of services, reasonable profit, and the generally prevailing tariff," added Singh.