‘No ‘Budget Air Service’ plans for now,’ informs civil aviation ministry in Lok Sabha

By Livemint

The Ministry of Civil Aviation on Thursday told the Lok Sabha that the Indian government has no plans to develop a “Budget Air Service.” The Ministry said that 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”. After the repeal of the Air Corporation Act in March 1994, the Indian domestic aviation market has been deregulated. Consequently, as a result, 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,” said the Civil Aviation Ministry while responding to a question on whether the Government proposes to launch “budget air service” during the lean hours, in the Lok Sabha during the ongoing Monsoon Session of Parliament.

The Ministry further said, “Thus, it is up to the airlines to provide air services to specific places depending upon the traffic demand and their commercial viability, in compliance with the relevant guidelines in this matter. However, the Ministry regularly interacts with the stakeholders from time to time with an aim to promote air connectivity.”

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