Coronavirus spread: Banks' exposure to travel, hospitality sectors at risk

65 listed firms in travel and tourism sector had Rs 30,500-cr outstanding loans in Sept.

Lenders’ exposure to the travel and hospitality sectors is at risk because of the economic disruption from the novel coronavirus (COVID-19). The 65 listed companies in the sector had combined outstanding loans worth around Rs 30,500 crore at the end of September 2019, up 37.2 per cent year-on-year (YoY) compared to the corresponding period a year ago.

The companies had total loan outstanding of around Rs 22,200 crore at the end of September 2018.

Hotels are the biggest borrowers followed by airlines. Hotel chains such as Indian Hotels, Chalet Hotels, Lemon Tree Hotels, and Asian Hotels (North) accounted for around 50 per cent of the combined borrowings of firms that Business Standard analysed.

Coronavirus spread: Banks' exposure to travel, hospitality sectors at risk

The analysis excluded unlisted large borrowers such as Air India and defunct companies such as Jet Airways, Cox & Kings and Kingfisher Airlines.

Among individual companies, SpiceJet was the most indebted in the industry. The airline had total outstanding debt of around Rs 8,800 crore at the end of September 2019, against Rs 1,217 crore a year ago. It was followed by Coffee Day Enterprises, which had debt worth Rs 6,500 crore at the end of September 2019, up from Rs 4,410 crore a year ago; Indian Hotels (Rs 3,500 crore); and, Mahindra Holidays (Rs 1,770 crore).

Airlines are facing the brunt of the disruption caused by COVID-19 as countries restrict air travel and travelers themselves cancel holiday plans. A prolonged decline in air travel is likely to hit SpiceJet’s finances, given its highly leveraged balance sheet. Its debt of around Rs 8,800 crore at the end of September 2019 was backed by a negative net

worth of Rs 461 crore, putting the airline and its lender in a financially vulnerable position.

In comparison, market leader Interglobe Aviation that runs IndiGo had total outstanding debt of around Rs 622 crore at the end of first half of financial year

Tatas likely to take call on cash-strapped Air India bid this week

JV with Singapore Airlines, Temasek may submit EoI.

Tata Sons and Singapore Airlines are actively weighing the option to bid for Air India and a decision to submit an expression of interest (EoI) could be taken soon.

Sources aware of the development said the board of Tata Sons, the holding company of the group, would meet later this week and possibly take up the Air India matter for approval.

Singapore government’s sovereign fund Temasek is also likely to be a part of the consortium being planned for the Air India bid, one of the sources said.

When asked about Tata group’s interest in Air India, Bhaskar Bhat, chairman of Vistara and a director in Tata Sons board, said the group was evaluating options.

"We are evaluating Air India. Which company would not be interested in evaluating a sovereign airline of the country?...Whether we bid or not comes later," he said. On whether Vistara or Tata Sons was evaluating Air India, Bhat said, "We (Vistara) are a joint venture".

The government has decided to sell 100 per cent stake in the airline and has invited bids for it. The last date to submit bids is March 17 but the deadline could be extended if there are requests from potential bidders.

Officials involved in Air India’s sale process said a big reason why the Tata group didn’t submit a bid last time was the government’s decision to hold on to 24 per cent stake. “They were interested last time too. But a big hurdle was that they wouldn’t have been able to merge Air India with Vistara unless they owned 100 per cent,” another source said.

After its unsuccessful bid to sell Air India in 2018, the central government this time has decided to off-load its entire stake.

Tatas, the salt-to-software conglomerate, and Singapore’s national airline operate Vistara, which inducted its first wide body aircraft Boeing 787-9 Dreamliner on Monday.

The wide body aircraft is the centre piece of Vistara’s business plan. It’s expecting that supremacy in long-haul international routes will help it recoup losses due to the cut-throat domestic market dominated by low-cost airlines.

CCI sees no evidence of collusion by IndiGo, others in price fixing: Report

CCI in 2015 ordered a probe into allegations of anti-competitive practices after similar fares were being offered on certain routes by IndiGo, SpiceJet , GoAir, state-run Air India and Jet.

Investigators with India's antitrust watchdog have found no evidence that the country's biggest airline, IndiGo , and four rival carriers colluded to fix ticket prices, three sources with direct knowledge of the matter told Reuters.

The Competition Commission of India (CCI) in 2015 ordered a probe into allegations of anti-competitive practices after similar fares were being offered on certain routes by IndiGo, SpiceJet , GoAir, state-run Air India [AIN.UL] and now-defunct Jet Airways .

The CCI inquiry, which included an analysis of the algorithms airlines to determine ticket fares, found that all five airlines were working independently, the three sources said.

"No direct evidence of cartelisation was found," said one of the sources, who added the investigation also did not reveal any communication amongst airline executives to fix prices.

Budget airline IndiGo, the country's biggest carrier, said in a statement "the case is without merit" and added that it has been cooperating with the investigation.

The second-biggest airline, SpiceJet, GoAir, Air India and Jet Airways did not respond to a request for comment. The CCI did not respond to questions from Reuters.

ALSO READ: SpiceJet to launch 20 new flights for daily services on domestic routes

An adverse finding could have led to a fine of up to three times the profit made in each year prices were fixed, or 10% of annual revenue, whichever is higher. Indian airlines are already grappling with slow growth in air traffic.

Details of the CCI case, which was investigated in two phases, have not been made public in line with the watchdog's practice.

The agency, whose senior members are reviewing the investigation findings, has not made a final ruling and could further extend the investigation. But two of the sources said the airlines were likely to be cleared.

Govt appoints Rajiv Bansal as Air India CMD amid privatisation process

Bansal has served as CMD of Air India for around a year in 2017 before going back to the oil & gas ministry.

In between the privatisation process of Air India, the government appointed Rajiv Bansal, an additional secretary with the oil and gas ministry, as the new boss of the state-owned airline.

He will replace Ashwani Lohani, the current Chairman & Managing Director (CMD), who didn’t agree to extend his one-year contract, which expired on February 11.

Rajiv Bansal has served as CMD of Air India for around a year in 2017 before going back to the oil & gas ministry.

Lohani, who was reappointed Air India CMD in 2019, had earlier held the position for around two years from 2015. In August 2017, he was named the Chairman to the Railway Board. He retired on December 31, 2018.

Sources aware of the development said Lohani didn’t agree to extending his one-year contract as he didn’t see an opportunity for growth.

“He wasn’t very happy as there were cap on expansion and growth plans due to the ongoing disinvestment process, he didn't want to be remembered as the last CMD of Air India as it now exists,” the person said.

The government has undertaken for the third time the process to privatise Air India after a failed attempt in 2017. As part of the process, the Department of Private Assets and Management has put limits on any capex expansion plans of the airline.

China coronavirus death toll rises to 170; confirmed cases soar to 7,711

Chinese President Xi Jinping called the coronavirus a "demon" which should be brought under control.

International News : The nationwide death toll from China's novel coronavirus epidemic has jumped to 170 with 38 more fatalities reported mainly from the worst-affected central Hubei province, the government said on Thursday, while confirming more than 1,700 new infections.

The coronavirus outbreak began in Wuhan, capital of China's Hubei province, in December and has now spread across the globe. The Chinese authorities are trying to contain the epidemic while other countries, including India, are working on plans to evacuate their citizens from Wuhan and other cities in Hubei province, the epicentre of the outbreak.

Chinese President Xi Jinping on Tuesday called the coronavirus a "demon" which should be brought under control, pledging that the government would be transparent and release information on the virus in a "timely" manner.

China's National Health Commission said on Thursday that 7,711 confirmed cases of pneumonia caused by the novel coronavirus had been reported in 31 provincial-level regions and in the Xinjiang Production and Construction Corps by the end of Wednesday.

A total of 170 people have died of the disease, it said.

It said in its daily report that 1,370 patients remained in critical conditions, and 12,167 people were suspected of being infected with the virus by the end of Wednesday.

A total of 124 people have been discharged from hospital after recovery.

A total of 1,737 new confirmed cases, including the first in Tibet, and 4,148 new suspected cases, and 38 deaths - 37 in Hubei Province and one in Sichuan Province - were reported by Wednesday.

Arnab heckling row: After IndiGo & Air India, SpiceJet suspends Kunal Kamra

SpiceJet said on Twitter, "SpiceJet has decided to suspend Mr. Kunal Kamra from flying with the airline till further notice."

SpiceJet on Wednesday suspended stand-up comedian Kunal Kamra from flying with it after he allegedly heckled journalist Arnab Goswami aboard an IndiGo Mumbai-Lucknow flight.

SpiceJet is the third airline to take action against Kamra. While IndiGo suspended Kamra from flying with it for a period of six months on Tuesday itself, Air India banned him until further notice.

Aviation Minister Hardeep Singh Puri had taken note of the incident on Tuesday and "advised" other airlines in India to impose similar restrictions on Kamra, stating "offensive behaviour designed to provoke & create disturbance inside an aircraft is absolutely unacceptable & endangers safety of air travellers".

On Wednesday morning, SpiceJet said on Twitter, "SpiceJet has decided to suspend Mr. Kunal Kamra from flying with the airline till further notice."

An AirAsia India official told PTI that the airline is waiting for the aviation regulator DGCA to issue a formal notice, and after then it will take action against Kamra.

Kamra allegedly heckled Goswami, the editor of Republic TV, on IndiGo's Mumbai-Lucknow (6E5317) flight on Tuesday.

Company News

Govt announces plan to sell entire stake in Air India, sets terms for sale

March 17 is deadline for submissions of initial expressions of interest; any bidder would have to agree to assume roughly $3.26 billion in debt.

The government said India said on Monday it plans to sell its entire stake in Air India, in a revised push to sell its national carrier after an initial attempt to sell a majority stake in the airline failed to draw a single bid in 2018.

A document inviting expressions of interest in Air India, released on Monday, said the government would sell a 100 per cent stake in the carrier, which operates both domestic and international routes.

The document set March 17 as the deadline for submissions of initial expressions of interest and said any bidder would have to agree to assume roughly $3.26 billion in debt, along with other liabilities.

The government said that substantial ownership and effective control of Air India would have to remain vested with an Indian entity following the sale, limiting the scope of any foreign bidders interested in the asset.

In 2018, India had tried to sell a 76% stake in Air India and offload about $5.1 billion of its debt, terms that potential buyers at the time viewed as too onerous.

Air India, known for its Maharaja mascot, has some of India's most lucrative international and domestic landing and parking slots that are key for airlines.

BS

Air India unions may demand VRS in meeting with Hardeep Singh Puri today

The government is planning to float Expression of Interest (EoI) for selling its entire 100 per cent stake in the loss-making flag carrier some time next week.

Company News : Air India trade unions are likely to demand a VRS package at their second meeting with Minister of State for Civil Aviation Hardeep Singh Puri in New Delhi on Monday.

The minister is set to meet over a dozen Air India unions, including unrecognised ones, on Monday for the second time in a month over the airline's privatisation plans.

The government is planning to float Expression of Interest (EoI) for selling its entire 100 per cent stake in the loss-making flag carrier some time next week.

At the first meeting on January 2, the minister had made it clear that privatisation was the only option before the government to keep the airline afloat and sought employees cooperation in carrying out the disinvestment process.

Puri had also told the unions that he will call them again after the meeting of the ministerial panel on Air India disinvestment.

"Initially, we were told that government would protect our jobs if airline gets privatised and therefore we did not think about voluntary retirement.

"But off late, our members have been approaching us and want us to discuss a voluntary retirement scheme package with the government as it is expected that our job will be protected only for one year post privatisation. We are going to raise this issue at the meeting with the minister on Monday," an airline source told PTI.

The source said that if the government agrees "in-principle" on their demand, the unions will work out the contours of the VRS package, including the service cut-off period and the quantum of monetary compensation.

Media reports suggest that the new investor may be allowed to retain Air India's some 11,000 employees only for one year after the carrier goes into private hands.

The Group of Ministers (GoM) led by Union Home Minister Amit Shah during its meeting on January 7 approved the plan to invite EoI and the sale-purchase agreement for the disinvestment of state-run carrier, an official had earlier said.

Air India's net loss in 2018-19 was around Rs 8,556 crore. Moreover, its per day losses are estimated to be in the range of Rs 20-26 crore, alongwith a debt of around Rs 80,000 crore.

Air India may not be able to sustain operations, CMD Lohani tells Centre

Air India is seeking government approval to raise a Rs 2,000-crore loan and refinance $819-million aircraft debt, which would help tide over the financial crisis.

BS : Air India Chairman Ashwani Lohani has warned of flight disruptions and possible invocation of government guarantee because of delays in fundraising and refinance of aircraft debt. Air India is facing a cash squeeze due to lack of fund infusion and monthly shortfall of Rs 220 crore in operations.

It has led to the airline defaulting on statutory payments and caused delays in payment to vendors and service providers as well.

Air India is seeking government approval to raise a Rs 2,000-crore loan and refinance $819-million aircraft debt, which would help tide over the financial crisis. “The overall financial situation of the airline is grossly untenable and it may not be able to sustain physical operations in the absence of immediate government intervention and support,” Lohani wrote to the civil aviation ministry last week while seeking nod for refinance of loan and fresh loan guarantees.

Air India received an offer from a consortium of four banks to refinance the $819 million bridge loan taken for acquiring six Boeing 787 and one Boeing 777 aircraft.

The government guarantee in respect to the bridge loan will expire on December 27 and the airline has sought government nod to refinance it before end of the month. “In case the current bridge financing loans of $819 million are not paid off, the lenders may call on the central guarantee in the next one week as they have to take action 15 days prior to the expiry of the guarantee,” Lohani said in his letter.

A civil aviation ministry official said Air India’s proposals for loan guarantee and loan refinancing have been forwarded to the finance ministry for approval. Air India made a loss of Rs 8,556 crore in the last financial year. The airline continues to bleed in the current fiscal despite increase in revenue and yields. New domestic and international flights, too, have been launched but delay in fund infusion has also resulted in continued grounding of 12 Airbus planes.

Last Saturday, Lohani also took to the social media to highlight difficulties in running the airline and make a fresh plea for funds.

In a Facebook post, Lohani had said the airline needs to survive before it is sold.

The government is looking to sell 100 per cent stake in Air India and is expected to issue expressions of interest next month.

Air India pilot bodies seek meeting with aviation minister on privatization

Earlier this month, as many as 13 Air India unions including its pilots unions, Indian Pilots Guild (IPG) and Indian Commercial Pilots Association (ICPA), had discussions with the airline top brass.

Flag carrier Air India's pilot bodies--IPG and ICPA -- on Tuesday sought appointment with civil aviation minister Hardeep Singh Puri for a clarity on the proposed disinvestment amid the government preparing to exit from the airline business.

The government for long has been trying to sell debt- ridden airline but could not attract bidders. It has now again decided to call bids for sale next month.

The pilot bodies, in a communication to Puri, said that the airline management appraised it of the status of disinvestment during a recent meeting but it did not provide any clarity on pending issues or provide any roadmap with regards to the future of employees as a result of this disinvestment process.

Earlier this month, as many as 13 Air India unions including its pilots unions, Indian Pilots Guild (IPG) and Indian Commercial Pilots Association (ICPA), had discussions with the airline top management on the issue of privatisation.

"We, the Air India employees have a big stake in the success and prosperity of our airline. We request you to kindly grant us an urgent appointment for a meeting at your convenience so that we can have clarity on the mechanics of the disinvestment process and communicate employees issues/concerns as well as the ground reality to you directly," the pilot bodies said in a joint letter to the aviation minister.

"We would like to bring to your kind attention that in 2007 when the merger of AI and IA was being processed, we had raised various issues regarding employee status and service conditions in the merged entity," it said.

At the meeting,it was "categorically" emphasised that the interest of the employees of both erstwhile Indian Airlines and Air India was of paramount importance and as such while drafting the Scheme due care has been taken to protect the same, the letter said.

Despite the merger of the two carriers about 12 years failing to achieve the projected synergy, the employees have been working tirelessly to make the merger a success and to improve the condition of the airline which has deteriorated due to "mismanagement" and "legacy issues", the letter said.

"We were made tall promises at the time of merger which have all fallen flat and have grave apprehensions regarding the future of our airline as well as our own livelihood post disinvestment," it added.

Business Standard

Now, Air India to serve food from stocked on international return journeys

Within the next a few months, Air India will start serving food from India on its flights returning from the Gulf region.

Air India's Chairman and Managing Director Pradeep Singh Kharola said Wednesday the airline has started carrying food from India for use during the journey back to the country, in an attempt to rationalise catering costs on international flights.

The loss-making airline has already started using food items stocked from India during its onward journey to Stockholm, Copenhagen, Birmingham and Madrid, and use them when returning. It has said food items purchased from these foreign cities are much more expensive when compared to Indian cities.

"The food is taken from here in India in chillers and then it is heated whenever it has to be used... Catering costs for us are around Rs 600 crore to Rs 800 crore a year. Catering in India is 3-4 times cheaper as compared to catering in the West," Kharola said.

Within the next a few months, Air India will start serving food from India on its flights returning from the Gulf region, he added.

As a cost-cutting measure, Air India decided in July 2017 to not serve non-vegetarian food to economy class passengers on its domestic flights.

"There are some flights like the ones going to Gulf, Singapore and even some parts of Europe, where it is possible to upload the food here (in India) only. Some work is going on in that direction," he said.

ALSO READ: Air India passengers can now upgrade seats from economy to business class

"More important thing is the taste. Whatever you can do, the European caterer's taste can't match with the Indian caterer, especially when it comes to Indian food. That is the additional benefit we get. The main thing is that the costs come down drastically," he added.

The portion of the food given to passengers would remain exactly the same, he clarified.

Asked how much Air India would be able to save with this measure, Kharola said these are early days and the programme will expand.

Air India is estimated to have a debt burden of more than Rs 48,000 crore and the government's efforts for strategic disinvestment of the flag carrier failed in May last year. It has been making losses since the merger with Indian Airlines in 2007.

High interest burden, increasing competition, high airport user charges, adverse impact of exchange rate variation and liberalised bilaterals to foreign carriers leading to excess capacity in the market are among the reasons for the losses, according to the civil aviation ministry.

Business Standard

Air India ground staff go on flash strike, flights from Mumbai delayed

The staff of AIATSL, the ground-handling subsidiary of Air India, went on a flash strike from 11 pm on Wednesday, demanding reinstatement of three employees who had been fired earlier.

Air India flights from Mumbai are facing delays, some by as much as six hours, owing to a flash strike called by the carrier’s ground staff.

Ground-handling functions like check-in, loading and unloading of bags, among other things, are handled by the airline's subsidiary Air India Air Transport Services Limited (AIATSL), whose staff went on a flash strike from 11 pm on Wednesday, demanding the reinstatement of three employees who were fired from the job.

The flash strike is causing delays, but there have been no cancellations so far. The airline's Newark flight (AI 191) departed 2.30 hours late and Bangkok flight (AI 330) took off six hours after scheduled departure.

"Due to a sudden industrial situation at Mumbai by AIATSL employees, some flights have got delayed.

We are assessing the situation and all efforts are being made to minimise delays or disruption," said an Air India spokesperson.

"Air India staff have been called from home to help with passenger check-ins," the spokesperson added.

Business Standard

Chief Minister Pinarayi Vijayan has also confirmed that a passenger aircraft has successfully landed in Kannur International Airport.

The first passenger aircraft has successfully landed in Kannur International Airport, marking the readiness of the fourth airport in Kerala for commercial operations. The airport, which is getting ready with an investment of Rs 22.92 billion is expected to help the state attract tourists.

Chief Minister Pinarayi Vijayan has also confirmed that a passenger aircraft has successfully landed in Kannur International Airport.

"The trial was carried out by the Air India Express aircraft IX 555. It is part of the final procedures for getting clearance to commence commercial operations. KIAL has informed that the trial was successful," he said.

The project is being developed by Kannur International Airport Ltd (KIAL), promoted by Government of Kerala, to build and operate airport of International standards at Mattannur, in Kannur District, the northern part of Kerala, primarily to cater the need of large Non Resident Indian (NRI) population in the region who travel frequently to various international destinations, the business community and tourists.

According to the company, around 32.86 per cent of the shares of KIAL is held by the state government while 22.54 per cent is by central public sector undertakings, 9.39 per cent is by Airports Authority of India and 32.21 per cent by others including qualified institutions buyers, individuals, companies, cooperative banks and societies.

This will be the second greenfield airport in Kerala, being built on Public Private Partnership model in an area of about 2,300 acres. The land is acquired by the state government through KINFRA, the Nodal Agency, and will be transferred to the company in a phased manner. The airport will be operational in 2018, and the company has earlier claimed that it would make Kerala the only state in the country to have four international airports. As per the Information Memorandum prepared by SBI CAPS, the airport is expected to have an approximate annual traffic of 1.65 million international and 0.16 million domestic passengers in the first year of operation.

It is estimated that currently 13% of the district population is employed overseas which is forecasted to be increased is a considerable rate in the coming years, it added.

Article Source Business Standard

System failure, bad weather: Narrow escape for Air India in New York

The flight also witnessed the malfunctioning of all three of its Instrument Landing System receivers on board the jet.

Even after multiple system failure, adverse weather conditions and lack of fuel while struggling to land at the John F Kennedy Airport in New York, an Air India pilot succeeded in saving the lives of 370 passengers on-board.

It was September 11, when Air India’s AI-101 was flying from New Delhi to New York.

An ANI report said the plane was suddenly caught in between the worst flying conditions any pilot would want to imagine. The pilot reported to the Air Traffic Control (ATC) that the flight experienced multiple system failure and was low on fuel, which also restricted its time of flying when the system failed.

The flight also witnessed the malfunctioning of all three of its Instrument Landing System receivers on board the jet. This meant that the pilots needed to manually land the aircraft.

The report said in such conditions and unable to land at the JFK International Airport, the pilot manning AI-101 somehow managed to land at the alternate designated airport in Newark.

According to the information, Air India has set up an inquiry on aircraft and constituted an internal inquiry under the monitoring of airlines flight safety department.

Confirming the news, Air India spokesperson Praveen Bhatnagar said, “For New York diversion, the flight safety department is investigating the matter. The Air India pilots have successfully handled the situation.”

Article Source BS

As dust storms brew, India breathes toxic air throughout the year

In 2018 alone, there have been 50 severe storms across 16 Indian states that have led to more than 500 deaths, compared to 22 storms between 2003 and 2017.

Deadly dust storms sweeping over the densely-populated north Indian plains are part of a "new normal" of disruptive weather events worsening the country’s already-lethal air pollution and causing disruption in the $2.3-trillion economy.

In recent months, dust clouds and storms have killed hundreds of people, destroyed thousands of homes and farmers’ crops and led to flight cancellations. The government in New Delhi, a city of more than 20 million people, ordered a halt to construction activities as the airborne sand significantly worsened north India’s air quality, far outside the winter months that usually herald the region’s descent into a months-long toxic haze.

"It’s definitely a new normal -- the frequency and intensity of these storms is unprecedented," said Sunita Narain, director general of New Delhi’s Centre for Science and Environment, who added that recent weather is related to desertification, deforestation and an over-extraction of groundwater.

In India, extreme weather events can quickly lead to dozens of deaths and cause economic hardship, with the World Bank estimating that environmental degradation costs India roughly $80 billion each year. At the same time, soaring levels of tiny, deadly particulate matter have prompted concern about a brewing public health emergency in the politically-gridlocked capital, where doctors warn of rising lung cancer and heart disease cases.

Economic Threat
In 2018 alone, there have been 50 severe storms across 16 Indian states that have led to more than 500 deaths, compared to 22 storms between 2003 and 2017, and only nine between 1980 and 2003, the CSE said. Nearly 5,000 houses collapsed, while livestock were killed and crops were ruined across the states of Uttar Pradesh, Madhya Pradesh, Bihar and others, according to a report by the CSE.

Flights were cancelled across north India on airlines including Air India, Indigo and Spice Jet, said Kapil Sabharwal, a spokesman for New Delhi’s airport.

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4 years of Modi: More Indians in airplanes now than in AC trains, says govt

With India emerging as the third largest aviation market, air passenger traffic growth has been in the range of 18-20 per cent over the past three years.

The number of flyers in India is more than those travelling in AC coaches of trains, documents released to mark the fourth anniversary of the Narendra Modi government  show.
With India emerging as the third largest aviation market, air passenger traffic growth has been in the range of 18-20 per cent over the past three years.


"For the first time, more people travelled in airplanes than in AC trains," according to the document, titled 'saaf niyat, sahi vikas' (clean intent, right development).


Prime Minister Narendra Modi , while presenting the government's report card at a rally in Cuttack last Saturday, had drawn the people's attention to the rapid growth of the civil aviation sector in the country.


The Aviation Ministry is targeting a five-fold increase in passenger trips to one billion per annum in 15-20 years. The civil aviation sector will also see the addition of 1,000 aircraft in the Indian skies in the coming decade from about 550 aircraft today.


The document also said that domestic air passenger crossed 100 million in 2017. It said the National Civil Aviation Policy 2016 has been unveiled to transform the sector.


Under the present dispensation, the Civil Aviation Ministry had launched the Regional Connectivity Scheme or UDAN (Ude Desh ka Aam Naagrik) to provide air connectivity to smaller towns and hilly terrains at affordable prices.



The ministry has claimed the scheme as a major success and pushing the number of operational airports in the country to about 100.