Aviation sector

He also talked about the Centre’s plan to set up at least one heliport in each district in collaboration with states and UTs. The states should provide capital support for this initiative, said the minister on the issue of seaplanes. He also appealed to states and UTs to cut down the VAT on aviation fuel as it majorly contributes to the operational cost of the flights.

He made these remarks while speaking at the curtain raiser event on 'Wings India, 2022'. He also said that after US and China, India at present handles the third-largest domestic traffic. "We all know that in this densely globalised economy, air transport is a key element in the country's transport infrastructure and plays an important role in the country's economic growth," the minister said.

However, the airline's net loss declined by 54.8 per cent on a sequential basis. Besides, the revenue from operations rose by 104.6 per cent to Rs 5,608.5 crore from Rs 2,741 crore earned during the corresponding quarter of the previous quarter.

The Directorate General of Civil Aviation (DGCA) on Monday said that provisions of the 'Civil Aviation Requirements' rules are applicable on aircraft operators, MROs, FTOs, and air navigation service providers.

Accordingly, the capacity is being raised from 72.5 per cent, which was set on August 12, 2021. Domestic airlines were allowed to operate at over 80 per cent of per-Covid capacity in December, 2020. It was later reduced due to the second Covid wave. Last month, the Centre had allowed domestic airlines to deploy up to 72.5 per cent of their flight capacity, up from 65 per cent.

According to the Ministry of Civil Aviation, the fare band will now only be applicable for a 15-day cycle. Notably, the ministry in an order issued on Saturday said that if the fare cap applicability date starts from September 20, the fare bands shall be applicable till October 4. However, any booking done on September 20 for travel on or after October 5 shall not come under the fare bands.

According to the International Air Transport Association (IATA), India's domestic air passenger volume -- measured in revenue passenger kilometres (RPK) -- was one of the highest amongst major aviation markets such as Australia, Brazil, China, Japan, Russia and the US. In India, the RPK growth rose by 123 per cent in July when compared to the levels in the like period of 2020.

Under the National Monetisation Pipeline (NMP) which was unveiled on Monday, divestment of AAI residual stake in four airports of JVs is also being considered. Under NMP, the government has identified 13 sectors that could monetize their assets, airport being one of them.

The development comes amid a uproar among the air travellers over high airfares as India-UK flights restart on Sunday after a pause of around three and half months. The minimum one-way fare on the Delhi-London non-stop route of the economy class in August for Vistara is in the range of Rs 1,03,191-1,21,356. The British Airways fares are in the range of Rs 1,28,916 to Rs 1,47,544.

Notably, the centre's regulations have been justified as to protect the domestic aviation sector from economic turmoil unleashed by Covid-19. However, IATA's Director General Willie Walsh during a media interaction said that the regulations are distorting the market rather than supporting growth of the market.