Aviation Industry lost Rs 28,907 crore in last three years: Govt

MoS Ministry of Civil Aviation Gen VK Singh in Lok Sabha on Thursday said the Aviation Industry has witnessed a loss of Rs 28,907 crore in the last three years.

New Delhi: The Aviation Industry witnessed a loss of Rs 28,907 crore in the last three years with Rs 4,770 crore in 2019, Rs 12,479 crore in 2020, and Rs 11,658 crore in 2021, the Ministry of Civil Aviation said in Lok Sabha on Thursday. This information was provided by MoS, Ministry of Civil Aviation Gen Dr. VK Singh (retd) via a written reply while replying to a question from Congress MP Anumula Revanth Reddy on the losses incurred by the civil aviation industry.

To a question on whether the Government has fixed any timeline to conduct a similar analysis for the improvement of the financial status of the aviation industry in the country and whether the Government has fixed any timeline to conduct a similar analysis for the improvement of the financial status, the MoS, while denying it, said "The airlines are run by Private Operators and the Government has deregulated the airline fares. As such, the Government does not analyse the financial status of airlines."

On the initiatives taken by the Government to reduce the financial loss of the aviation industry, the MoS in his reply noted that "Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) has been reduced by 17 States/ UTs" including in Jammu and Kashmir, Himachal Pradesh, Ladakh, Uttar Pradesh, Haryana, Madhya Pradesh, and others.

The Airports Authority of India (AAI) and other Airport Developers have targeted a capital outlay of approximately Rs. 98,000 crores in the airport sector in the next five years for the expansion and modification of existing terminals, new terminals, and strengthening of runways, among other activities, the Minister said.