India has positioned itself as one of the most rapidly advancing aviation markets globally. The airline companies originating from India have been experiencing significant growth in their operations, accompanied by an expansion of their aircraft fleet. However, to oversee and manage this rapidly expanding sector, India relies on a legislation that has stood the test of time: the Aircraft Act of 1934 (hereinafter referred to as "Act"), which addresses numerous facets of civil aviation within the country.

It oversees and regulates the registration of aircraft, the management of air navigation, and the formation of aviation regulatory bodies such as the Directorate General of Civil Aviation (hereinafter referred to as "DGCA"). Although the Act has functioned as the fundamental legislation governing aviation in India for nine decades, there is a growing acknowledgement of the necessity for a new statute to respond to the evolving complexities of the aviation sector.

The current legislation may lack the necessary provisions to address the advancements in technology, shifts in aviation practices, and the evolving landscape of international standards. The necessity for a new legislative measure is further propelled by the difficulties encountered by the DGCA and other aviation regulatory bodies in the proficient execution and enforcement of the Act's provisions. The challenges encompass constrained resources, an antiquated regulatory framework, and complexities in tackling emerging issues such as cybersecurity, drone regulations, and environmental considerations.

A newly formulated act designed to tackle contemporary challenges would establish a more comprehensive legal structure for the regulation of civil aviation in India. It has the potential to improve the efficiency and effectiveness of regulatory bodies such as the DGCA in upholding safety, security, and compliance within the aviation sector. The Act has undergone 21 amendments throughout the years yet continues to function with less efficacy than anticipated.

The most recent amendment to the Act, namely the Aircraft (Amendment) Bill, 2020 (hereinafter referred to as "Bill"), was approved by the Lok Sabha on March 17, 2020, and subsequently by the Rajya Sabha on September 15, 2020. This amendment conferred statutory authority upon regulatory bodies such as the DGCA, enabling them to perform oversight and regulatory duties concerning the issues outlined in the Bill.

The Bill conferred statutory authority upon the Bureau of Civil Aviation Security (hereinafter referred to as "BCAS") to execute regulatory oversight functions pertinent to civil aviation security with efficacy, as well as upon the Aircraft Accidents Investigation Bureau (hereinafter referred to as "AAIB") to conduct investigations concerning aircraft accidents and incidents in an impartial and equitable manner. The rationale for conferring statutory status upon the specified authorities was to enhance India's aviation safety ranking, as recommended by the International Civil Aviation Organisation.

The Bill revised the Act by augmenting the authority of the central government to establish regulations on a range of issues, such as the registration of aircraft, oversight of air transport services, restrictions on flights over designated regions, and the governance of air navigation services. The legislation conferred upon the Director General of BCAS, or any designated officer, the authority to issue directives and establish regulations pertaining to various aspects, including the conditions for aircraft operation, the inspection of aircraft, and the protection of civil aviation from unlawful interference.

The Bill further stipulated the appointment of designated officers tasked with adjudicating penalties under the Act, incorporating provisions for filing appeals against their decisions, thereby facilitating the delivery and preservation of justice in an impartial manner. The legislation raised the upper limit of penalties for violations of the Act from Rs. 10 lakhs to Rs. 1 crore.

The legislation established the compounding of specific offences, permitted the revocation of licenses upon discovery of violations of the Act, and delineated that judicial proceedings could only be initiated with the formal complaint or approval of authorised entities. Moreover, the Bill broadened the exemption for military aircraft to encompass all armed forces of the Union and upheld regulations for non-exempt military aircraft until the central government determines otherwise.

One question that emerges is whether India's standing on the global stage genuinely did enhance as a result of the amendments to the Act introduced by the Bill? In 2023, the ranking of India's aviation safety oversight by the International Civil Aviation Organisation (ICAO) saw a notable enhancement. India ascended to the 55th position, improving from its prior rank of 112. The enhancement was realised via the ICAO's Coordinated Validation Mission (ICVM) undertaken in November 2022, which evaluated several essential safety components.

The Directorate General of Civil Aviation (DGCA) has announced a revised Effective Implementation (EI) score of 85.65%, indicative of India's improved safety oversight competencies. Given the swift evolution of the aviation industry, it was deemed more prudent to overhaul the entire framework rather than merely implement amendments to the existing Act.

The Minister of Civil Aviation, Shri K. Ram Mohan Naidu, presented the Bhartiya Vayuyan Vidheyak Bill 2024 in the Lok Sabha on July 31, 2024. This New Bill aims to supplant the existing Act, thereby discarding the colonial legacy associated with aviation, a sector characterised by its modernity and advanced technology. The proposed legislation consists of eight chapters and forty-three clauses. The principal enhancement to the New Bill involves the transfer of the Radio Telephone Operator Restricted (RTR) Certificate and Licence Testing Process from the Department of Telecom (DoT) to the Directorate General of Civil Aviation (DGCA).

What does an RTR mean and why was it essential to have it introduced to the airline pilots? It is a certification essential for airline pilots to communicate effectively with air traffic control (ATC) and other aircraft using radiotelephony. This involves understanding radio communication procedures, aviation terminology, and emergency protocols. For a long time till the amendment was passed, DoT was responsible for conducting the RTR exams.

However, due to various challenges and the need for better alignment with aviation regulations, the government decided to transfer this responsibility to the DGCA. This provision also allows an expedited issuance of the RTR license to all those personnel involved in the operation and maintenance of the aircraft.[1] The RTR exam has a reputation for being challenging and allegedly plagued by corruption. By bringing the exam under the DGCA's purview, the bill aims to tackle issues related to corruption and improve the examination's integrity.

In the New Bill, the definition of aircraft has been amended by removing the balloons and gliders as what qualifies as an aircraft which was earlier mention under Section 2(1) of the Act. The New Bill retains to regulate activities related to aircraft like manufacturing, possession, use, operation, trade and apart from this, the New Bill shall also regulate the design of the aircrafts. The question arises, if the New Bill empowers the authorities to regulate the design of the aircraft wouldn't it cause market set-back for the aircraft manufactures though the intention is to enhance the safety and quality standards? Some of the potential issues that could arise could be-

1. Time-Consuming Approval Processes: The regulatory approval processes for aircraft design can be complex and time-consuming. Manufacturers may experience delays in bringing new aircraft models to the market if they must navigate through extensive approval procedures imposed by the DGCA.
    
2. Impact on Innovation: Direct regulation of aircraft design by the DGCA may limit the scope for innovation in the industry. Manufacturers may feel constrained in exploring new technologies, materials, or design concepts if they have to adhere strictly to regulatory standards set by the aviation authority.
    
3. Compatibility Issues: Manufacturers operating in global markets may face challenges in harmonizing design requirements across different jurisdictions. Regulations imposed by the DGCA on aircraft design must align with international standards to ensure compatibility and facilitate global market access.

By creating this setback, the legislation also somewhat provides a solution the New Bill includes provisions to set up Final Assembly Line (FAL) for the design and manufacturing of aircraft in India thus giving a major boost to Atmanirbhar Bharat initiative. The New Bill vests more power and authority with the central government to regulate or prohibit certain construction activities, issue directives, detain aircraft, and enact emergency orders as the situation arises.

The incorporation of clauses in the New Bill that enhance the authority of the DGCA, BCAS, and AAIB regarding aviation safety in India indicates a substantial transition towards strengthening regulatory control within the sector. The Act enhances regulatory compliance and safety standards by authorising the Central Government or authorised officials to suspend, revoke, or limit licenses or certificates issued under the framework.

The implementation of a second appeal option for regulatory proceedings, accompanied by an interim appeal procedure, improves openness and due process, giving impacted parties a fair chance to contest regulatory judgements. This progressive governance strategy in the aviation industry reflects a dedication to responsibility, promoting a culture of compliance, and protecting the interests of all stakeholders within the aviation ecosystem.

Nonetheless, the New Bill stipulates that appeals against the directives of the DGCA or BCAS shall be directed to the central government, with no subsequent appeals permitted against the central government's decision. This appears unjust and capricious, lacking any assurance or recourse in the event of a violation of natural justice concerning Sections 10, 11, 12, 13, 14, or 17 of the New Bill.

The New Bill suggests a consolidation of regulations and certifications into a singular framework, aimed at enhancing efficiency and facilitating a more streamlined operational environment for airline companies. The recent legislation would empower the central government with emergency authority to promptly tackle urgent aviation issues, thereby safeguarding public safety.

The New Bill represents a noteworthy advancement in the modernisation of India's aviation regulatory framework. While it implements essential modifications to tackle modern challenges, it simultaneously evokes apprehensions regarding possible market repercussions for aircraft manufacturers and provokes scrutiny in the ultimate resolution of the issues at hand. The new legislation currently under consideration in the Lok Sabha on August 9, 2024, is pending approval in the Rajya Sabha before it can be enacted.

End Notes:

1. Bharatiya Vayuyan Vidheyak 2024, s (11) (2)

Written By: Mr.Urjaswal K. Bhatt, 4th Year B.A. LL.B (Hons.) student at NMIMS' Kirit P. Mehta School of Law, Mumbai.