Parliament Question: Policy for Expansion of Domestic Airlines

GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA UNSTARRED QUESTION NO. : 1902 ( TO BE ANSWERED ON THE 30th July 2026 ) POLICY FOR EXPANSION OF DOMESTIC AIRLINES 1902. DR. MOHAMMAD JAWED Will the Minister of CIVIL AVIATION be pleased to state:- (a) whether the Government has any policy or plans to promote the establishment and expansion of domestic airlines in view of the growing passenger traffic in the country and if so, the details thereof; (b) whether the Government proposes to increase the number of Indian airlines operating on international routes and expand bilateral air connectivity and if so, the details thereof; and (c) the steps taken to enhance the competitiveness and global presence of Indian airlines including measures to improve international connectivity, fleet expansion and market access? ANSWER Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar Mohol) (a) to (c): The Government has taken several measures to enhance the competitiveness and global presence of Indian airlines. These include creating an enabling ecosystem through development of new airports and expansion of airport infrastructure, financial support to airlines through the UDAN Scheme, promotion of aircraft leasing and domestic Maintenance, Repair and Overhaul (MRO) facilities through tax and policy reforms, and expansion of bilateral air service arrangements with foreign countries. The international operations of airlines are governed by the bilateral Air Services Agreement (ASA) between India and the respective country. Indian designated carriers are free to mount operations to/from any point in India to foreign destinations as per mutually agreed capacity limits under the ambit of ASA. Thestart of direct international flights from any point in India is purely a commercial decision of scheduled airlines on the basis of passenger demand, availability of slots, economic viability of the route and other associated factors. The Government has provided an enabling environment for the growth of the civil aviation sector but it does not interfere in the operational plans of the airlines. Airlines are free to induct capacity with any aircraft type and to select the markets and networks they wish to serve. ******