PRS · Ministry of Civil Aviation ·

State of the Civil Aviation Sector in India

Distilled Policy Brief

  • The sector suffered severe Covid‑19‑induced losses – airlines lost over Rs 19,500 crore and airports Rs 5,120 crore – and Air India has been the biggest fiscal burden, with the government spending Rs 1,22,542 crore (2009‑10 to 2020‑21) and approving its sale for Rs 18,000 crore in Oct 2021.

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Airline sector losses during Covid-19 and Air India’s fiscal burden underscore the need for financial restructuring in civil aviation.

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🎯 UPSC Prelims Practice Drill

Economy

According to the recent data on the civil aviation sector, which of the following statements about Air India’s financial impact on the Ministry of Civil Aviation is correct?

  • [A] Air India has been the biggest expenditure head of the Ministry of Civil Aviation since 2011‑12, with the government spending Rs 1,22,542 crore on it between 2009‑10 and 2020‑21.
  • [B] The approved sale price of Air India in October 2021 (Rs 18,000 crore) exceeded the total government spending on the airline from 2009‑10 to 2020‑21.
  • [C] In the financial year 2021‑22, the government provided a fresh loan of Rs 9,260 crore to Air India.
  • [D] By January 2020, Air India’s accumulated debt stood at Rs 71,000 crore.
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [A] Air India has been the biggest expenditure head of the Ministry of Civil Aviation since 2011‑12, with the government spending Rs 1,22,542 crore on it between 2009‑10 and 2020‑21.

Option A is directly stated: Air India has been the biggest expenditure head since 2011‑12, with Rs 1,22,542 crore spent between 2009‑10 and 2020‑21. Options B, C and D contradict the figures given (sale price Rs 18,000 crore, fresh loan Rs 4,500 crore, debt Rs 60,000 crore).

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