Aviation Sector MCQ

Question 1

Consider the following statements regarding FDI policy in India's aviation sector:
1. Brownfield airport projects are limited to 49 percent FDI under the automatic route.
2. Scheduled air transport service and domestic scheduled passenger airline FDI was raised to 100 percent, with up to 49 percent under the automatic route.
3. Foreign airlines may invest in Indian companies operating scheduled and non-scheduled air transport services up to 49 percent of paid-up capital, subject to conditions.
Which of the statements given above are correct?

Accepted Answer

Statement 1 is false because 100 percent FDI under the automatic route was allowed in brownfield airport projects. Statements 2 and 3 are correct as per the cited FDI release.

Question 2

1. The Union Cabinet approved the Civil Aviation Policy on 15 June 2016.
2. The 2016 policy was described as the first integrated civil aviation policy since Independence.
3. The 2016 policy introduced a requirement of 5 years of domestic flying for starting international operations.
Which of the statements given above are correct?

Accepted Answer

Statements 1 and 2 are true: the Cabinet release is dated 15 June 2016 and calls the policy the first integrated civil aviation policy since Independence. Statement 3 is false because the policy removed, rather than introduced, the 5-year domestic flying requirement for international operations.

Question 3

Consider the following statements regarding GAGAN:
1. GAGAN is a joint effort of AAI and ISRO.
2. It was described as the first SBAS certified for approach with vertical guidance in the equatorial ionospheric region.
3. Since 14 February 2014, it has provided navigation signals from GSAT-8 and GSAT-10 satellites.
Which of the statements given above are correct?

Accepted Answer

All three statements are correct. GAGAN is a joint AAI-ISRO system. The PIB release describes it as the first such SBAS for APV in the equatorial ionospheric region, and states that signals have been provided from GSAT-8 and GSAT-10 since 14 February 2014.

Question 4

Consider the following statements regarding aircraft leasing and finance measures at GIFT-IFSC: 1. The Government listed exemption from corporate tax for a block period of 10 years within the first 15 years for aircraft leasing units. 2. Stamp-duty exemption was listed for aircraft-leasing transactions carried out from International Financial Services Centres at GIFT City. 3. The IFSCA Act was cited as providing a unified regulator for the IFSC in India. 4. The Government prohibited re-leasing of aircraft and engines within India after expiry or termination of an existing lease unless the aircraft was physically re-exported first. Which of the statements given above are correct?

Accepted Answer

Statements 1, 2 and 3 are correct: the PIB release lists a 10-year corporate-tax exemption within the first 15 years, stamp-duty exemption for IFSC transactions at GIFT City, and the IFSCA Act as providing a unified regulator. Statement 4 is false because the measure enables re-leasing within India without physical re-export, rather than prohibiting it.

Question 5

Consider the following statements regarding aviation-sector restructuring and regulation:
1. The strategic disinvestment of Air India was completed on 27 January 2022.
2. After Air India's disinvestment, the Government of India retained equity in Air India Express.
3. AERA's stated functions include fixing, reviewing and approving tariff structure for aeronautical services.
Which of the statements given above are correct?

Accepted Answer

Statements 1 and 3 are correct. Air India's strategic disinvestment was completed on 27 January 2022, and AERA is associated with tariff review and approval for aeronautical services. Statement 2 is false because the government stated that no equity stake was left in Air India or AIXL after the disinvestment.

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