13 Aug Steps taken by the Government to overcome the Operating Cost for Civil Aviation sector (GS-3, Economy, Infrastructure,PIB)
Context:– The details of major steps taken by the Government to overcome the operating cost for civil aviation sector, inter-alia, are as follows:
- Provide support to airlines through various policy measures.
- Provide airport infrastructure through the Airports Authority of India and the private operators.
- Promotion of private investments in existing and new airports through the PPP route.
- Route rationalization in the Indian airspace in coordination with the Indian Air Force for efficient airspace management, shorter routes and lower fuel consumption.
- Goods and Services Tax (GST) rate reduced to 5% from 18% for domestic Maintenance, Repair and Overhaul (MRO) services.
- As on date, exclusive air-links or Air-Bubbles have been established with 28 countries with the objective of restarting international passenger services while regular international flights remain suspended due to COVID-19.
- A calibrated increase of domestic aviation.
- Stipulating fare-band for the airlines.
- A conducive aircraft leasing and financing environment has been enabled.
- Benefits under Emergency Credit Line Guarantee Scheme (ECLGS) 3.0 have been extended to the civil aviation sector.