Aviation

No cash or tax incentive for aviation sector in government bailout

The government today did not announce any cash bailout or tax concessions for the aviation sector and announced intent to improve airspace management across the country, make India an MRO hub and privatisation of government airports, as part of the bailout package for the sector.

Finance minister Nirmala Sitharaman today announced that the government would work towards improving airspace management.

“Today, only 60% of the airspace is available for commercial flights and discussions will happen to ensure that more airspace is made available to commercial flights, which will not just reduce travel time between two destinations but also reduce cost of operations for the airlines,” Finance Minister Nirmal Sitharaman announced today.

The other announcements included privatising six more airports currently owned and operated by the state-owned Airports Authority of India. The announcement also included making India a hub for Maintenance Repair and Overhaul (MRO).

Notably, these reform announcements have been made in the past in the Budget speech this year and after a review meeting of the aviation sector by the prime minister.

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ET News
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