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Centre has no plans to develop budget airlines, Civil Aviation ministry informs Lok Sabha

“It is up to the airlines to provide air services to certain locations based on traffic demand and commercial viability, in accordance with the necessary guidelines," as per a statement from the Civil Aviation ministry.

July 23, 2021 / 01:12 PM IST
The statement further noted that the Indian domestic aviation market has been deregulated since March 1994 when the Air Corporation Act was repealed, and pointed out that airlines are “free to induct capacity with any aircraft type for selecting whatever markets and network they wish to service and operate across the country.”  (Representative Image: Reuters)

The statement further noted that the Indian domestic aviation market has been deregulated since March 1994 when the Air Corporation Act was repealed, and pointed out that airlines are “free to induct capacity with any aircraft type for selecting whatever markets and network they wish to service and operate across the country.” (Representative Image: Reuters)


The Civil Aviation Ministry, on July 22, informed the Lok Sabha that it had “no plans to develop a Budget Air Service” and that airlines themselves must provide services based on demand and commercial viability, as per “necessary guidelines”.

“It is up to the airlines to provide air services to certain locations based on traffic demand and commercial viability, in accordance with the necessary guidelines. The Government of India has not been contemplating the launch of ''Budget Air Service'',” the statement said, Mint reported.

The statement further noted that the Indian domestic aviation market has been deregulated since March 1994 when the Air Corporation Act was repealed, and pointed out that airlines are “free to induct capacity with any aircraft type for selecting whatever markets and network they wish to service and operate across the country.”

The ministry also added that airlines can provide services to specific places depending on “traffic demand and commercial viability, in compliance with relevant guidelines “, but noted that the ministry “regularly interacts with the stakeholders from time to time with an aim to promote air connectivity”.

The response came after a question was posed at the Lok Sabha during the Monsoon Session of the Parliament.
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