The Civil Aviation Ministry recently presented a Draft Aircraft Bill, 2023, which acknowledges the need to revamp, streamline and simplify existing regulations for meeting the current needs of the aviation industry. The aim of the new legislation is to provide a simplified approach to regulations and make better provisions for regulation and control of the design, manufacture, possession, use, operation, sale, import and export of aircraft and for connected matters.
Image Source: PIB.gov.in
The growth and development of an economy depends on the growth of its transport sector to a great extent. This sector is thus recognized as the lifeline of an economy. The sector is constituted by roads and highways, railways, civil aviation and water expanse.
Within the transport sector, the aviation sector offers global connectivity and plays a crucial role in advancing international trade and business. It greatly influences the shape of a country’s economy by connecting and integrating it with other countries and continents.
Civil aviation has emerged as one of the fastest-growing industries in India during the past few years. In 2010, about 79 million people travelled to/from/or within India. The figure doubled to 158 million in 2017, and the number of travellers is expected to treble to 520 million by 2037.
India currently has 131 operational airports including 29 international, 92 domestic, and 10 custom airports. The airplane fleet is expected to quadruple in size to nearly 2,500 airplanes by 2038.
The growing proportion of middle-income households, thriving healthy competition amongst low-cost carriers, improved infrastructure at leading airports, increased FDI inflows, increased tourist inflows and the government’s supportive policies have together enabled the growth of the Indian aviation sector. At present, India is the third largest domestic market in the world in terms of seat capacity, whereas in terms of international seat capacity, it holds the 18th position.
The size of the Indian Civil Aviation – Maintenance, Repair & Overhaul (MRO) market currently stands at around US$ 900 million. It is expected to reach US$ 4.33 billion by 2025, growing at a CAGR of about 14-15%. The unmanned aerial vehicles (i.e. drones) industry in India is expected to have a total turnover of up to US$ 1.8 billion by 2026.
India allows up to 100% FDI in non-scheduled air transport services, helicopter services and seaplanes under the automatic route. Up to 100% FDI is being allowed in MRO for maintenance and repair organizations, flying training institutes, and technical training institutes under the automatic route.
In terms of technology, administration and regulations, the aviation sector is very dynamic in nature, since new situations come to the fore very often. In view of this dynamic nature of the sector, the Civil Aviation Ministry recently presented a Draft Aircraft Bill, 2023. The draft bill acknowledges the need to revamp, streamline and simplify existing regulations for meeting the current needs of the aviation industry.
The aim of the new legislation is to provide a simplified approach to regulations. It aims to make better provisions for regulation and control of the design, manufacture, possession, use, operation, sale, import and export of aircraft and for connected matters.
The proposed Draft Aircraft Bill 2023, has been prepared after reviewing the existing Aircraft Act 1934. In an official communication dated May 30, the Ministry informed that the bill has been issued for public consultations for a period of 30 days, allowing stakeholders and the public to provide their feedback and suggestions. It will then replace the existing Aircraft Act, 1934.
One of the major highlights of the draft bill is that it provides for the creation of three statutory bodies – the Directorate General of Civil Aviation, the Bureau of Civil Aviation Security and the Aircraft Accident Investigation Bureau. They will discharge regulatory and oversight functions in order to implement the Standards and Recommended Practices (SARPs) as prescribed by the Chicago Convention.
The draft bill prescribes the functions of the three statutory bodies as:
Another major highlight of the bill is that it endows the Central Government with the power of superintendence. All three statutory bodies will take orders from the Centre.
The bill states that the superintendence of the Directorate General of Civil Aviation, the Bureau of Civil Aviation Security and the Aircraft Accidents Investigation Bureau shall ‘vest in the Central Government.’ The government shall, as such, have the power to issue directions to each of these organisations, on any matters under ‘sub-section 2 of Section 3, 4 and 5,‘ respectively, if it considers necessary and expedient to do so in the public interest.
The draft bill further mentions that subject to the provisions of section 30, the Central Government may by notification in the Official Gazette, make rules for regulating the design, manufacture, possession, use, operation, sale, import or export of any aircraft or class of aircraft and for securing the safety of aircraft operations.
The demand for air travel is constantly rising, which in turn has necessitated the development of a robust ecosystem and supportive government policies. In addition, the aviation sector itself is very dynamic in nature. Considering these facts, experts have welcomed the Draft Aircraft Bill 2023.
According to aviation expert Vipul Saxena, “the Draft Bill 2023 is a more well-defined document than Aircraft Act, 1934, giving enough powers to administer the regulatory role to a statutory body, such as the DGCA [Directorate General of Civil Aviation], meeting regulatory challenges in current scenarios.”
The Draft Aircraft Bill, 2023 is a kind of a proactive approach by the Ministry of Civil Aviation in recognition of the importance of robust regulations, to support the fast-growing Indian civil aviation market. It intends to establish an effective framework for the regulation and control of various aspects related to aircraft operations in the country. The draft bill essentially seeks to facilitate a conducive environment for the aviation industry to flourish.
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