Domestic air traffic expected to reach around 97 pc of pre-Covid level: MoS Gen VK Singh

Feb 02, 2023

New Delhi [India], February 2 : Domestic air traffic has again picked up pace during the current financial year 2022-23, and is expected to reach around 97 per cent of the pre-Covid level, said General (Rtd) VK Singh, Minister of State for Civil Aviation, on Thursday.
In a written reply to questions in the Lok Sabha on whether there has been a heavy increase in domestic air traffic in the country in recent years, Gen Singh said that India has witnessed a double-digit Compound Annual Growth Rate (CAGR) of 14.5 per cent in terms of domestic passenger traffic during the period 2014-15 to 2019-20. During 2020-21 and 2021-22, there was a dip in domestic air traffic due to the impact ofCovid-19 pandemic.
Domestic air traffic has again picked up pace during the current financial year i.e. 2022-23 and is expected to reach around 97 per cent of the pre-covid level.
Member of Parliament Manoj Motak further asked about the steps taken by the government to improve the airport infrastructure along with the development of the civil aviation sector in the country according to the increased air traffic and passengers.
Gen Singh replied that the government is proactively supporting the aviation sector by providing a stable policy environment and incentivizing competition-led growth. In 2016, the government released the National Civil Aviation Policy (NCAP 2016), which laid out the vision, mission, and key objectives for the sector.
The government announced new MRO guidelines on September 1, 2021, with a view to creating a congenial atmosphere in the country for the development of the MRO industry for aircraft/ helicopters/ drones and their engines and other parts. These guidelines inter-alia provide for the allotment of land at AAI airports through the call of open tenders without levy of any royalty or cess of whatsoever nature to MRO operators.
Similarly, liberalized Flying Training Organisation (FTO) guidelines have been approved wherein the concept of airport royalty (revenue share payment by FTOs to AAI) has been abolished and land rentals have been significantly rationalized to encourage setting up of FTOs to address the shortage of pilots in the country. The government has also formulated Helicopter Operation Policy to encourage helicopter operations creating demand and growth.