**Subject:** Summary of Lok Sabha Unstarred Question No. 4798 Regarding Growth of Indian Domestic Aviation Market
**Date:** October 26, 2023
**Summary:**
This document summarizes the response provided by the Minister of State in the Ministry of Civil Aviation to Lok Sabha Unstarred Question No. 4798, addressed on August 21, 2025, concerning the growth and financial stability of the Indian domestic aviation market.
**Key Findings:**
* **Airline Capacity:** The Ministry reports that there has been no contraction in airline capacity, measured by Available Seat Kilometers (ASKM), based on information provided by Scheduled Indian Airlines for both domestic and international operations.
* **Government Intervention:** The Indian domestic aviation sector has been deregulated since the repeal of the Air Corporation Act in March 1994. Financial and operational decisions, including resource mobilization and debt restructuring, are managed by individual airlines based on commercial considerations.
* **National Civil Aviation Policy 2016:** The Government aims to foster a conducive environment for the sector's growth through simplified regulations and enhanced ease of doing business, as outlined in the National Civil Aviation Policy 2016.
* **UDAN Scheme:** The UDAN scheme is mentioned as an initiative that has improved the operational viability of airlines on regional routes through financial support, enabling cost-effective operations.
* **Financial Data (FY 2024-2025):** Provisional financial figures in millions are provided for major scheduled airlines:
* **Air India:** Debt - 2,68,796; Profit/Loss Before Tax - 38,902; Operating Cost - 6,17,770
* **Air India Express:** Debt - 6,175; Profit/Loss Before Tax - 56,782; Operating Cost - 2,04,006
* **Akasa Air:** Debt - 785; Profit/Loss Before Tax - 19,834; Operating Cost - 60,905
* **Indigo:** Debt - 6,70,884; Profit/Loss Before Tax - 75,875; Operating Cost - 7,65,223
* **SpiceJet:** Debt - 8,860; Profit/Loss Before Tax - 581; Operating Cost - 48,897
Key Entities Referenced
Ministry of Civil Aviation: The Indian government ministry responsible for the formulation of national policies and programmes for the development and regulation of the Civil Aviation sector.
DR. PRADEEP KUMAR PANIGRAHY: Member of Lok Sabha who raised questions regarding the growth and financial stability of the Indian domestic aviation market.
Shri Murlidhar Mohol: Minister of State in the Ministry of Civil Aviation who provided the answer to the questions raised in the Lok Sabha.
Air Corporation Act: An act that was repealed in March 1994, leading to the deregulation of the Indian domestic aviation sector.
National Civil Aviation Policy 2016: A government policy that aims to create a conducive ecosystem for the aviation sector's growth through simplified regulations and enhanced ease of doing business.
UDAN Scheme: A government initiative to improve the operational viability of airlines on regional routes through financial support, enabling cost-effective operations.
AIR INDIA: A major scheduled airline in India, with details provided regarding its debt, profit/loss before tax, and operating costs for the financial year 2024-2025.
Financial year 2024-2025: The financial year for which data on debt, profitability, and operational costs of major scheduled airlines is provided.
GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
LOK SABHA
UNSTARRED QUESTION NO. : 4798
( TO BE ANSWERED ON THE 21st August 2025 )
GROWTH OF INDIAN DOMESTIC AVIATION MARKET
4798. DR. PRADEEP KUMAR PANIGRAHY
Will the Minister of CIVIL AVIATION
be pleased to state:-
(a) whether the Government is aware that despite a 7% year-on-year growth in the Indian
domestic aviation market, there has been a contraction in airline capacity in July 2025 as
compared to both June 2025 and July 2024, raising concerns about the financial health of Indian
airlines and if so, the details thereof;
(b) the specific policy interventions being planned by the Government to ensure the financial
stability and promote healthy competition among Indian airlines in view of the industry’s
recurring financial volatility;
(c) whether the Government can provide data on the average airline debt, profitability and
operational costs during the last financial year (2024-25) and if so, the details thereof; and
(d) whether any regulatory reforms are being considered to prevent airline failures and protect
consumer interests in a highly competitive market and if so, the details thereof?
ANSWER
Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar Mohol)
(a) : As per the information provided by Scheduled Indian Airlines for Scheduled Domestic
and International operations, no contraction in airlines capacity (i.e ASKM) has been
observed.;;
(b) to (d) : With the repeal of Air Corporation Act in March 1994, the Indian domestic aviation
has been deregulated. The financial and operational decisions, including resource mobilization,
and debt restructuring, are managed by the respective airlines based on commercial
considerations. ;
;
Under the aegis of the National Civil Aviation Policy 2016, the Government creates a
conducive ecosystem for the sector to grow through simplified regulations and by enhancing
the ease of doing business.The Government proactively addresses the needs and challenges of
the Indian airline sector, to promote its sustainable growth and development. Initiatives such
as UDAN Scheme have improved the operational viability of airlines on regional routes
through financial support, thereby enabling cost-effective operations.
;
The details regarding Debt, Profitability and operational cost of major scheduled carriers for
the Financial year 2024-2025 is at Annexure.
******Annexure
Provisional figures (in millions ₹) of DEBT, P&L before tax and Operating cost of major
scheduled Airlines in Financial year 2024-2025
Airlines Debt Profit/Loss before tax Operating Cost
AIR INDIA 2,68,796 -38,902 6,17,770
AIR INDIA
EXPRESS 6,175 -56,782 2,04,006
AKASA AIR 785 -19,834 60,905
INDIGO 6,70,884 75,875 7,65,223
SPICEJET 8,860 -581 48,897