Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

Namo Drone Didi Scheme

Note4Students

From UPSC perspective, the following things are important:

Prelims level: Namo Drone Didi Scheme and its features

Why in the News?

The Govt. has released the Operational Guidelines for the Namo Drone Didi Scheme.

About Namo Drone Didi Scheme:

Details
About
  • Central Sector Scheme for the period of 2024 to 2026.
  • To provide drones to 14,500 Women Self Help Groups (SHGs) for rental agricultural services (applying liquid fertilizers and pesticides)
Total Funding Rs. 1,261 crore allocated by the Ministry of Agriculture and Farmers Welfare.
Financial Assistance
  • 80% of the cost (up to ₹8 lakh per drone), with remaining 20% to be financed through loans.
  • Loans available under National Agriculture Infra Financing Facility (AIF) with 3% interest subvention; SHGs can also access loans from other Rural Development programs
Training  
  • 15 days mandatory training for drone pilots.
  • Additional training for drone assistants in repairs and maintenance.
Training Providers Remote Pilot Training Organizations (RPTOs) approved by the Directorate General of Civil Aviation (DGCA).
Implementing Agency
  • Lead Fertilizer Companies (LFCs) responsible for coordinating with State Departments, drone manufacturers, and SHGs.
  • They will procure drones through a transparent process, with ownership placed with the Cluster Level Federations (CLFs) of SHGs or the SHGs themselves.
Operational Limits Drones must operate within visual line of sight (vLOS) and below 400 feet (120 meters) AGL.
Expected Outcomes
  • Each SHG is expected to cover approximately 2,000-2,500 acres annually;
  • IT-based Management Information System (MIS) – Drone Portal for tracking drone usage, fund disbursement, and monitoring service delivery

 

PYQ:

[2020] Consider the following activities:

  1. Spraying pesticides on a crop field.
  2. Inspecting the craters of active volcanoes.
  3. Collecting breath samples from spouting whales for DNA analysis.

At the present level of technology, which of the above activities can be successfully carried out by using drones?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

November 5 2024


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

Airports where pilots could fear to land

Note4Students

From UPSC perspective, the following things are important:

Mains level: Issues related to Infrastructure;

Why in the News?

  • The October 25, 2024, incident where a Qatar Airways Boeing 787’s landing gear sank into a collapsed ramp at Doha underscores the importance of runway safety concerns.
  • Similar risks exist in Chennai Airport’s expansion plans and the greenfield project at Parandur, where soil stability and structural integrity are critical issues that must not be overlooked.

Background 

  • The Chennai airport expansion, initially proposed in 2007, faced design and safety issues, including unsuitable soil for a parallel runway and violations in bridge construction standards, raising concerns about infrastructure reliability and potential flooding risks in future projects.

What are the specific challenges and risks pilots face when landing at these airports?

  • Runway Integrity: Pilots may encounter challenges if the runway or taxiways have structural weaknesses or are poorly designed, such as in the case of Doha, where the ground beneath collapsed under the aircraft’s weight.
  • Crosswinds and Weather Conditions: Airports located near water bodies or in regions with extreme weather may present challenges during landing, such as turbulence from crosswinds or sudden weather changes, increasing the risk of hard landings or runway excursions.
  • Ground Handling: The condition of the ground infrastructure, including taxiways and ramps, is critical. Pilots must be cautious of soft spots or areas not properly constructed to withstand aircraft weight, which can lead to accidents.
  • Limited Runway Width and Length: Airports with insufficient runway dimensions may restrict landing and takeoff performance for larger aircraft, posing risks during adverse conditions where longer stopping distances are required.
  • Inadequate Visual Aids: Poorly designed lighting and navigational aids can impair a pilot’s ability to assess runway conditions, especially in low visibility scenarios.
  • Safety Compliance: Non-compliance with international aviation standards during the design and construction phases may lead to operational hazards that pilots must navigate.

How do airport design and infrastructure impact aviation safety?

  • Structural Reliability: The strength and reliability of runway surfaces directly affect safety. Insufficient ground support may lead to structural failures under heavy loads, as seen in the Doha incident.
  • Drainage Systems: Effective drainage systems are vital for preventing water accumulation on runways, which can lead to hydroplaning and loss of control during landings.
  • Environmental Considerations: The placement of airports in flood-prone areas without adequate flood management strategies can compromise safety during heavy rainfall, as experienced in Chennai.
  • Design Standards: Compliance with International Civil Aviation Organization (ICAO) standards is crucial for ensuring that airports are capable of safely accommodating various aircraft types.
  • Construction Quality: The choice of construction materials and techniques directly impacts the longevity and safety of airport infrastructure. Cost-cutting measures may lead to substandard designs.

What measures are being taken to enhance pilot training and operational procedures at these high-risk airports? (Way forward) 

  • Enhanced Simulation Training: Pilots receive advanced simulation training to handle specific challenges associated with landing at high-risk airports, including crosswind landings and emergencies on compromised runways.
  • Regular Safety Audits: Conduct audits and inspections of airport facilities and infrastructure to ensure compliance with safety standards and identify potential hazards.
  • Real-time Weather Updates: Implementation of systems that provide pilots with real-time updates on weather conditions and runway status, helping them make informed decisions during landings.
  • Collaboration with Engineers: Continuous collaboration between pilots and airport engineers during the planning and construction phases to address potential safety issues upfront.
  • Training on Emergency Protocols: Training programs that include scenarios specific to airports with known risks, ensuring pilots are prepared for emergencies related to runway or taxiway failures.

Mains PYQ: 

Q Examine the development of Airports in India through joint ventures under Public – Private Partnership (PPP) model. What are the challenges faced by the authorities in this regard. (2017)

November 4 2024


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

[pib] HIM- DRONE-A-THON-2 & HIMTECH-2024

Note4Students

From UPSC perspective, the following things are important:

Prelims level: Read the attached story

Why in the News?

The Indian Army has announced two significant events, HIM-DRONE-A-THON 2 and HIMTECH-2024, aimed at advancing military technologies for operations in high-altitude areas.

About HIM-DRONE-A-THON 2 

  • HIM-DRONE-A-THON 2 is scheduled to take place at Wari La, near Leh on 17-18 September 2024.
  • This event serves as a platform for the Indian Drone Industry to demonstrate drone solutions tailored for high-altitude areas, where the Indian Army frequently operates.
  • The event will be conducted under actual terrain and environmental conditions at altitudes ranging from 4,000 to 5,000 meters to test the drones’ performance in realistic scenarios.
  • Indigenous drone manufacturers are invited to participate, demonstrating various drone types, including:
    • Surveillance drones
    • Loitering munitions
    • Logistics drones
    • Swarm drones
    • Drones with specialized roles and payloads, such as Electronic Warfare, Synthetic Aperture Radar, Communication Intelligence, and Electronic Intelligence.

HIMTECH-2024: Advancing High-Altitude Technologies

  • HIMTECH-2024 will follow HIM-DRONE-A-THON 2.
  • It is conceptualized to discuss, demonstrate, and explore new opportunities for the development and integration of technologies for high-altitude military operations.
  • It has been organized in collaboration with FICCI (Federation of Indian Chambers of Commerce & Industry).
  • It will highlight the latest technologies and systems developed to meet the operational requirements along India’s Northern Borders.
September 5 2024


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

India to host 2nd Asia Pacific Ministerial Conference on Civil Aviation

Note4Students

From UPSC perspective, the following things are important:

Prelims level: ICAO APAC

Why in the News?

  • India will host the second Asia Pacific Ministerial Conference on Civil Aviation on September 11 and 12.
    • The conference will be jointly organised by the Indian government and the International Civil Aviation Organization (ICAO) APAC.

About the International Civil Aviation Organization (ICAO)

Details
Establishment and Background
  • Founded on December 7, 1944, by the Chicago Convention on International Civil Aviation
  • Became a specialized agency of the United Nations in 1947
  • HQ: Montreal, Canada
Objectives and Mission
  • Develop international standards and regulations for aviation safety, security, efficiency, and environmental protection
  • Promote safe and orderly growth of international air transport
Structure and Governance
  • Assembly: Meets every three years, includes all member states
  • Council: Governing body with 36 elected member states
  • Secretariat: Led by the Secretary General, manages daily operations
Membership
  • 193 member states as of 2024
  • Open to all states subscribing to Chicago Convention principles
  • India: Founding member, joined in 1944
Functions and Responsibilities
  • Establish international standards and recommended practices (SARPs)
  • Conduct audits and monitor SARPs compliance
  • Provide technical assistance and capacity-building
  • Facilitate aviation data and statistics collection
Key Areas of Focus
  • Safety: Enhance global aviation safety
  • Security: Strengthen aviation security measures
  • Efficiency: Promote efficient air navigation services
  • Environmental Protection: Address aviation’s environmental impact
Significant Programs and Initiatives
  • Universal Safety Oversight Audit Programme (USOAP): Monitors safety oversight capabilities
  • Universal Security Audit Programme (USAP): Evaluates aviation security measures
  • Next Generation Aviation Professionals (NGAP): Addresses anticipated aviation professionals shortage
  • No Country Left Behind (NCLB): Assists states in implementing ICAO standards and policies
Publications and Resources
  • Annexes to the Chicago Convention: SARPs across civil aviation domains
  • ICAO Journal: Quarterly publication
  • Global Aviation Safety Plan (GASP) and  Global Air Navigation Plan (GANP): Strategic documents for aviation safety and navigation improvements.
Regional Offices Seven offices in Bangkok, Cairo, Dakar, Lima, Mexico City, Nairobi, and Paris
Standards
  • Annex 1: Personnel Licensing
  • Annex 6: Operation of Aircraft
  • Annex 8: Airworthiness of Aircraft
  • Annex 17: Security
  • Annex 19: Safety Management
Global Impact
  • Harmonizes international aviation policies and procedures
  • Contributes to safe, secure, and sustainable growth of global air transport

About Asia Pacific Ministerial Conference on Civil Aviation

  • The conference aims to strengthen regional collaboration and develop a future-focused vision for the region, emphasizing innovation and safety.
  • The inaugural conference took place in February 2018 in Beijing.
  • 39 member states of the UN aviation safety body, the International Civil Aviation Organisation (ICAO), from the Asia Pacific region are expected to attend.
  • The conference focuses on making aviation travel sustainable, resilient, and adaptive to the changing needs of a globally interconnected community.
    • This region accounts for 33.41% of global flight departures, the highest of any region worldwide.
    • Passenger numbers are expected to increase from 4.5 billion this year to 11.5 billion by 2050.

PYQ:

[2014] International civil aviation laws provide all countries with complete and exclusive sovereignty over the airspace above their territory. What do you understand by ‘airspace’ What are the implications of these laws on the space above this airspace? Discuss the challenges which this poses and suggest ways to contain the threat.

July 17 2024


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

Uniform IGST Rate of 5% on Aircraft and Aircraft Engine Parts

Note4Students

From UPSC perspective, the following things are important:

Prelims level: IGST; MRO industry of India.

Why in the News?

The government has implemented a uniform Integrated Goods and Services Tax (IGST) rate of 5% on all aircraft and aircraft engine parts.

Background: 

  • Prior to the implementation of GST in 2017, the taxation of aircraft and aircraft parts was complex, with different central and state taxes being levied.
  • Under the pre-GST regime, aircraft parts attracted a range of taxes, including excise duty, VAT, and additional customs duties, leading to a cascading effect and higher costs for the aviation industry.

IGST Harmonization for MRO Boost:

  • This move is aimed at boosting Maintenance, Repair, and Overhaul (MRO) activities in India.
  • Previously, GST rates on aircraft components varied between 5%, 12%, 18%, and 28%, causing several issues.

MRO Industry in India

  • The Indian MRO industry is projected to become a $4 billion industry by 2030.
  • Currently, India represents only 1% of the global MRO market, which is worth US$45 billion.
  • The industry is divided into airframe maintenance, engine maintenance (50-55% of work value), components maintenance, and line maintenance (weekly checks).
  • Commercial airlines spend 13-15% of their revenues on maintenance, primarily outsourcing heavy maintenance.

What is Integrated Goods and Services Tax (IGST)?

  • The IGST is a component of the GST system in India.
  • It is levied by the central government on:
  1. Inter-state /UT supply of goods and services;
  2. Imports of goods and services;
  3. Supply of goods and services to/by SEZ units;
  4. Deemed exports (certain transactions where goods supplied do not leave the country but are treated as exports under GST law).
  • IGST is calculated by adding the applicable Central GST (CGST) and State GST (SGST) rates.
  • One thing to remember in IGST is that the importing state gets the accrued benefit of taxes.

Rationale for the Uniform 5% IGST Rate

  • Simplification of Tax Structure: A uniform 5% IGST rate on aircraft and engine parts simplifies tax compliance and eliminates classification complexities.
  • Cost Efficiency: A lower IGST rate reduces overall tax burden on aviation industry, enhancing affordability of aircraft acquisition and maintenance.
  • Global Alignment: Aligns India’s tax policy with global standards, fostering competitiveness and attractiveness for international aviation investments.
  • Promotion of Aviation Services: Encourages aircraft leasing and MRO activities, supporting India’s aspiration to become a hub for these services.

PYQ:

[2017] What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’?

  1.  It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
  2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
  3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

July 16 2024


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

Bengaluru Airport bags 2024 Skytrax World Airport Awards

Note4Students

From UPSC perspective, the following things are important:

Prelims level: Skytrax World Airport Awards

Mains level: NA

Why in the news?

  • The Kempegowda International Airport (KIA) in Bengaluru has been honored as the Best Regional Airport in India and South Asia at the esteemed 2024 Skytrax World Airport Awards.
  • Since its inauguration in 2023, KIA Terminal-2 has garnered multiple accolades, including the UNESCO Prix Versailles World’s Most Beautiful Airport

About Skytrax World Airport Awards

  • The Skytrax World Airport Awards are annual awards, established in 1999 presented by Skytrax, a UK-based consultancy specializing in airline and airport research.
  • Since then, it has become a globally recognized authority in airline and airport research, known for its comprehensive passenger surveys and prestigious awards.
  • These awards are considered one of the most prestigious recognitions in the aviation industry and are often referred to as the “Oscars of the aviation industry.”
    • Various categories of Award: Best Airport, Best Regional Airport, Best Airport Terminal, and Best Airport Staff, among others.

Evaluation Criteria:

  • Rigorous evaluations of various aspects, including check-in procedures, arrivals, transfers, shopping facilities, security, immigration processes, and departures.
  • Feedback from airport customers of over 100 nationalities across 550 airports worldwide during a seven-month survey period contributed to the assessment.

Winners of the 2024 Awards

  • Doha’s Hamad International Airport clinched the top spot, dethroning Singapore Changi Airport, which had held the title for 12 consecutive years.
  • Hamad International Airport is praised for its architectural significance and luxurious amenities, covering an area equivalent to 75 football fields.
  • Seoul Incheon Airport secured third place overall and was recognized as the most family-friendly airport.

Performance of key Indian Airports:

  • Delhi Airport retained its position at 36th place in the overall rankings.
  • Mumbai Airport saw a slight decline, dropping to 95th place from its previous rank of 84.
  • Bengaluru Airport experienced a notable improvement, climbing 10 ranks to 59th place compared to last year’s 69th position.
  • Hyderabad Airport also showed improvement, rising to 61st place from its previous rank of 65th.
  • Goa’s Manohar International Airport secured the 92nd spot in the overall rankings.
April 20 2024


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

Aviation professionalism which India must draw from

Note4Students

From UPSC perspective, the following things are important:

Prelims level: Directorate General of Civil Aviation (DGCA)

Mains level: Implement stringent safety reporting and accountability measures in the Indian aviation industry.

India's civil aviation sector eyes new heights | Hyderabad News - Times of  India

Central Idea:

The article discusses the recent aviation accident at Tokyo’s Haneda airport involving a Japan Airlines (JAL) Airbus A350 and a Japanese Coast Guard Bombardier Dash 8. It highlights the disciplined evacuation and professionalism displayed by JAL’s crew, contrasting it with incidents where passengers’ lack of discipline during emergencies led to safety concerns. The author also points out flaws in training and safety reporting within the Indian aviation industry, focusing on a recent hard landing incident involving an Air India Airbus.

Key Highlights:

  • The Tokyo aviation accident as an example of Murphy’s law.
  • Disciplined evacuation by JAL crew saved lives.
  • Comparison with incidents of passenger indiscipline during emergencies.
  • Flaws in reporting and handling safety incidents in Indian aviation.
  • The importance of crew training and adherence to safety procedures.

Key Challenges:

  • Lack of discipline among passengers during emergencies.
  • Flaws in training and safety reporting within the Indian aviation industry.
  • History of covering up serious incidents and accidents in Air India.
  • Need for proactive action and accountability in the face of safety concerns.

Pilot Project: Indian aviation faces twin troubles - The Economic Times

Key Terms:

  • Notice to airmen (NOTAM)
  • Aviation Safety Adviser
  • Directorate General of Civil Aviation (DGCA)
  • Simulator proficiency check
  • Emergency evacuation procedures
  • Hard landing
  • Aircraft type conversion

Key Phrases:

  • “If there is a possibility of several things going wrong, the one that will cause the most damage will be the one to go wrong.”
  • “High professional standards in JAL’s training of its crew.”
  • “A disturbing fact is the failure of the Air India management to act proactively.”
  • “The hard landing accident at Dubai should serve as a wake-up call for the airline.”

Key Quotes:

  • “The world witnessed the highest quality of discipline and crew training.”
  • “Many questions will be raised, and we will not have any reasonable answers.”
  • “Merely stating that safety is paramount when so many incidents are being swept under the carpet will not improve the reputation of the airline.”

Key Statements:

  • The disciplined evacuation from the JAL aircraft showcased the importance of crew training and adherence to safety procedures.
  • Flaws in training and safety reporting in the Indian aviation industry, especially in incidents like the hard landing at Dubai, raise concerns about passenger safety.

Key Examples and References:

  • Tokyo aviation accident involving JAL Airbus A350 and Coast Guard Dash 8.
  • Air France flight AF 358 overshooting runway incident.
  • Emirates flight EK 521 crash incident with passenger indiscipline.
  • Air India’s history of covering up incidents, including the recent hard landing at Dubai.
  • Indian Airlines Airbus crash in Bangalore in 1990 and TAM Airlines Airbus crash in Sao Paulo in 2007.

Key Facts:

  • All 379 passengers on the JAL plane in the Tokyo incident escaped, with five fatalities on the smaller aircraft.
  • Aircraft manufacturers must demonstrate complete evacuation within 90 seconds in maximum density configuration.
  • The hard landing by an Air India Airbus in Dubai involved a 3.5g impact, posing serious risks.

Critical Analysis:

The article critically examines the disciplined response of JAL’s crew in contrast to incidents of passenger indiscipline during emergencies. It sheds light on the flaws in training and safety reporting within the Indian aviation industry, emphasizing the need for accountability and proactive measures. The historical context of accidents caused by confusion in flying different aircraft types is highlighted, urging the industry to focus on standards and crew proficiency.

Way Forward:

  • Implement stringent safety reporting and accountability measures in the Indian aviation industry.
  • Emphasize crew training and adherence to safety procedures, learning from incidents like the Tokyo aviation accident.
  • Ensure transparency in reporting and addressing safety concerns to improve the reputation of airlines.
  • Evaluate crew selection criteria for new aircraft types, prioritizing proficiency and experience over seniority.
  • Collaborate with international aviation standards to enhance overall safety in the industry.
January 8 2024


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

In news: DigiYatra Initiative

Note4Students

From UPSC perspective, the following things are important:

Prelims level: DigiYatra

Mains level: Read the attached story

DigiYatra

Central Idea

  • Travellers at Indian airports have raised privacy concerns over the Digi Yatra initiative, which involves collecting facial biometrics without explicit consent.

About DigiYatra

  • DigiYatra offers paperless airport entry using facial recognition technology.
  • It aims for paperless, contactless airport checkpoints, identifying travelers by facial features linked to boarding passes.
  • This system automates passenger entry at various points like airport entry, security checks, and boarding using facial recognition.
  • Passengers no longer need to present ID cards and boarding passes.
  • The DigiYatra Foundation, a joint venture with stakeholders including the Airports Authority of India and major Indian airports, is implementing the project.
  • The Airports Authority of India holds a 26% stake, while five major airports equally share the remaining 74%.

How to Use DigiYatra?

  • Passengers register on the DigiYatra app with Aadhaar validation and a self-captured image.
  • Next, they scan their boarding pass, sharing credentials with airport authorities.
  • At the airport e-gate, passengers scan their boarding pass; the facial recognition system validates their identity and travel documents.
  • After validation, passengers can enter through the e-gate.
  • Normal security clearance and boarding procedures still apply.

Need for DigiYatra

  • Facial recognition technology streamlines flying and reduces airport congestion.
  • This technology, already in use at airports like Dubai, Singapore, Atlanta, and Narita (Japan), enhances efficiency.

Data Privacy and Security Concerns

  • Data Usage and Deletion: Passenger data will be used only for defined purposes and deleted 24 hours after flight departure.
  • Compliance and Concerns: The FRT system will adhere to India’s data privacy and protection practices. However, concerns have been raised about the adequacy of the Personal Data Protection Bill (PDPB), 2019, which falls short of the standards set by the Justice Srikrishna Committee and does not fully align with the Justice K.S. Puttaswamy vs Union of India judgment on the right of privacy.

Concerns Over Biometric Scanning at Airports

  • Privacy and Consent: Issues of data storage, access, and the option to opt-out raise privacy concerns among passengers.
  • Biometric Data Misuse: Without clear regulations, there’s a risk of personal data being accessed or misused by unauthorized entities.

Issues with Biometric Scanning Technologies

  • Inherent Bias: Research indicates that FRT and AI can be biased, with higher misidentification rates for non-white individuals.
  • Algorithmic Discrimination: Studies have shown that machine learning algorithms can discriminate based on race and gender.

Conclusion

  • Advancements in Air Travel: The implementation of FRT in Indian airports marks a significant technological advancement in air travel.
  • Addressing Privacy Concerns: Ensuring robust data privacy measures and addressing inherent biases in technology are crucial for the successful and ethical implementation of FRT systems.
  • Future of Air Travel Security: As FRT becomes more prevalent, continuous evaluation and improvement of these systems will be essential to safeguard passenger privacy and enhance travel efficiency.

Try this PYQ from CSP 2022:

Consider the following (2022)

  1. Aarogya Setu
  2. CoWIN
  3. Digi Locker
  4. DIKSHA

Which of the above are built on top of open-source digital platforms?

(a) 1 and 2 only

(b) 2, 3 and 4 only

(c) 1, 3 and 4 only

(d) 1, 2, 3 and 4

Post your answers here.

1
Please leave a feedback on thisx

January 6 2024


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

Go First crisis: What is Cape Town Convention?

Note4Students

From UPSC perspective, the following things are important:

Prelims level: Cape Town Convention

Mains level: Aviation Sector Crisis

Cape Town Convention

Central Idea

  • The Ministry of Corporate Affairs (MCA) issued a notification exempting aircraft-related transactions from certain sections of the IBC, aligning Indian regulations with the Cape Town Convention (CTC).
  • The notification eliminates the automatic moratorium on aircraft, engines, airframes, and helicopters, allowing lessors to repossess planes during airline insolvency.

Understanding the Go First Crisis

  • Bankruptcy: Go First, a prominent budget airline in India, filed for bankruptcy, becoming the second Indian airline to do so in recent years, following Jet Airways’ bankruptcy in 2019.
  • Debt and Lessors: Go First faced substantial debt, including over ₹2,600 crore owed to various aircraft lessors.
  • Engine Supplier Blame: The airline attributed its crisis to engine supplier Pratt & Whitney, claiming that faulty engines led to flight disruptions and significant financial losses.

Dispute between Indian Airlines and Aircraft Lessors

  • Dependency on Foreign Lessors: Indian airlines heavily rely on foreign lessors to finance aircraft acquisitions, with approximately 80% of India’s 800 commercial aircraft under lease.
  • Legal Barriers: Legal proceedings in Indian courts have prevented lessors from repossessing Go First’s aircraft, potentially intensifying disputes between lessors and Indian airlines.
  • Higher Risk Premiums: Experts anticipate that lessors may charge higher risk premiums to mitigate future turbulence with Indian airlines, leading to increased business costs and potentially higher airfares for passengers.

About Cape Town Convention (CTC)

Establishment 2001, Entered into force on March 1, 2006.
Purpose Facilitates aircraft financing and leasing, establishing global standards and legal framework.
Global Registry International registry for aircraft and equipment ownership interests, enhancing transparency.
Leasing CTC simplifies aircraft leasing operations by allowing quick deregistration and repossession.
Priority Rules Determines the priority of interests in aircraft, crucial in cases of default or insolvency.
Default Remedies Outlines procedures and remedies in case of default, including repossession rights.
Coverage Encompasses aircraft and aircraft equipment (engines, avionics), offering comprehensive legal guidelines.

 

CTC and India

  • India is a signatory to the CTC since 2018.
  • Despite being a party to the CTC, Indian laws have often prevailed over CTC provisions in cases of conflict, impacting lessors’ rights.

Government’s Vision for Aircraft Leasing in India

  • Hub for Aircraft Leasing: The Indian government aims to establish the country as a hub for aircraft leasing, attracting global lessors.
  • Alignment with International Norms: To achieve this vision, alignment with international aviation conventions like the CTC is crucial.

Lessors’ Current Challenges

  • Prospective Impact: The MCA notification is effective prospectively and may not immediately assist Go First’s lessors in repossessing aircraft.
  • Sub-Judice Matters: The matter of repossession is currently under judicial consideration.
  • Previous Attempts: Lessors had applied to the Directorate General of Civil Aviation (DGCA) to repossess planes from Go First before the NCLT’s admission of insolvency.
  • Pending Legislation: The government had planned legislation to prioritize CTC provisions over conflicting Indian laws, but it has not been tabled in Parliament.

Need for CTC Legislation in India

  • Current Status: India is a CTC signatory but lacks the necessary legal protection, resulting in conflicts between existing laws and CTC norms.
  • Fueling Aviation Growth: Legalizing CTC provisions is essential to support the aviation market’s growth and facilitate smoother aircraft leasing operations.
  • Impact on Passengers: Without proper legislation, higher premiums by lessors could lead to increased airline costs, ultimately affecting passengers through higher ticket prices.

Conclusion

  • The urgent enactment of the Cape Town Convention (CTC) Bill in India is crucial to harmonize legal provisions, protect lessors’ rights, and ensure the sustainable growth of the aviation industry without burdening passengers with escalated airfares.
October 6 2023


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

India as Aviation Transit Hub

Note4Students

From UPSC perspective, the following things are important:

Prelims level: Transit Hub

Mains level: Read the attached story

transit hub

Central Idea

  • In the world of aviation, a transit hub serves as a crucial intermediary point for travelers making their way from one foreign country to another.
  • It’s like a well-orchestrated stopover where passengers switch from one aircraft to another, aiming for a seamless journey.

What is a Transit Hub in Aviation?

  • A transit hub is like a bridge in the sky, connecting travellers from one foreign destination to another with minimal fuss.
  • It should offer a smooth experience for passengers moving from Country A to Country C via Country B.
  • Such hubs usually rely on a major airline with an extensive network to provide one-stop flights, ideally with no more than a 2 to 3-hour wait between flights.
  • Picture it as a hub-and-spoke model, where flights come together at the hub and then branch out to various destinations, making travel affordable and efficient.

Can India Become a Transit Hub?

  • In 2018-19, Indian airlines managed 40.2% of air passenger traffic to and from India.
  • This number has grown to 44% in 2022-23, while overseas airlines’ share has shrunk to 56%.
  • India now boasts low-cost carriers for short and medium-haul international flights, including newcomers like Akasa.
  • These trends signal India’s potential to become an economical transit hub, offering essential services to start.

Which Airlines could make it happen?

  • Air India group and IndiGo are potential game-changers in turning India into a transit hub.
  • Together, they have nearly 1,500 aircraft on order, with most being narrow-body planes capable of covering 5 to 8 hours of travel, including European destinations.

Any other player for transit hubs?

  • The plan begins with New Delhi, where a collaborative effort between the government, Delhi airport, and airlines seeks to optimize the hub experience.
  • Transit hubs are also in the works for Mumbai, Bengaluru, Hyderabad, and Kolkata, depending on flight origins.
  • Mumbai could be an attractive stop for African travellers, while Delhi might serve Central Europe and West Asia.

Is there any Policy Support?

  • The Ministry of Civil Aviation endorses the idea, urging airlines to offer more non-stop international routes.
  • Airports and airlines are working to create larger spaces within airports for transit passengers.
  • Initiatives might include dedicated terminals for international flights or large carriers to streamline travel.

Conclusion

  • India’s aviation landscape is evolving, with a rising share of passenger traffic attributed to domestic airlines and the emergence of low-cost international carriers.
  • The potential for India to become a transit hub is grounded in these shifting dynamics.
September 1 2023


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

Need for Overhaul in UDAN Scheme

Note4Students

From UPSC perspective, the following things are important:

Prelims level: UDAN Scheme

Mains level: Read the attached story

udan

Central Idea

  • Union Civil Aviation Ministry inaugurated a new phase of the Ude Desh Ka Aam Nagrik (UDAN) scheme, or UDAN 5.2, to improve last-mile connectivity in remote regions of the country through small aircraft.
  • There have been aspersions regarding the success of the UDAN regional connectivity scheme (RCS) since ONLY 11 of the 74 Greenfield airports are decently operational.

Progress till now

  • Route Closures: Out of the 479 routes launched under RCS, 225 have ceased operations, leading to significant route closures.
  • Commercial Viability: Around 70 of the routes were found to be commercially unviable even with subsidies, leading airlines to discontinue their operations.
  • Three-Year Sustainability: The objective of RCS was for airlines to become self-sustaining after three years, but only 58 out of 155 routes completed this period successfully.
  • Incomplete Infrastructure: Some airports, such as Thanjavur, Moradabad, Saharanpur, and Ayodhya, were not ready for operations, leading to the discontinuation of 12 routes.

What is UDAN Scheme?

  • UDAN Scheme, initiated in 2016, aims to enhance aviation infrastructure and air connectivity in Tier II and Tier III cities.
  • It was formulated based on the review of The National Civil Aviation Policy (NCAP)-2016, with the goal of fulfilling the aspirations of the common citizen.
  • The scheme, designed to last for 10 years, operates with a self-financing mechanism through the establishment of the Regional Connectivity Fund (RCF).
  • The RCF funds the viability gap funding (VGF) requirements of the scheme by levying certain domestic flights, thereby stimulating growth and development in the aviation sector.
  • As part of the scheme, the Airports Authority of India has waived the airport fee.

Issues with the scheme

  • Route Discontinuance: Some routes launched under UDAN have been discontinued, raising concerns about their sustainability.
  • Challenges in Expansion: Efforts to improve connectivity to hilly regions and islands through helicopters and seaplanes have faced hurdles due to land unavailability and operational difficulties.
  • Unrecovered since the Pandemic: The COVID-19 pandemic has adversely affected the aviation industry, further impacting the sustainability of airlines.

Various Challenges

  • Financial Constraints: Many smaller airlines struggle with insufficient funds, making it difficult to maintain aircraft, pay rentals, and provide staff salaries.
  • Maintenance Issues: Smaller players often have limited aircraft that are poorly maintained, and acquiring new planes is expensive.
  • Pilot Availability: The availability of pilots can be a challenge for smaller airlines, leading to higher costs when hiring foreign pilots.
  • Competition: Routes dominated by bigger domestic players like IndiGo and SpiceJet tend to see better success rates.

Way Forward

  • Extended Subsidy Period: Airlines need an extension of the subsidy period to develop routes sustainably and achieve self-sufficiency.
  • Addressing Pandemic Impact: The impact of the COVID-19 pandemic on travel restrictions and passenger safety should be considered when evaluating the losses incurred by airlines.
  • Collaboration and Support: The government and stakeholders need to collaborate to address financial constraints and maintenance issues faced by smaller airlines.
  • Continuous Evaluation: Regular evaluation and necessary adjustments in the UDAN scheme are essential to overcome challenges and ensure successful implementation.

Conclusion

  • While India has made significant strides in airport development, challenges related to commercial viability and infrastructure readiness must be addressed to ensure sustainable air connectivity across the nation.
  • Renewed focus on the UDAN scheme and optimizing airport infrastructure can pave the way for a robust aviation sector that benefits smaller cities and contributes to the overall growth of the nation’s economy.
July 31 2023


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

IndiGo’s Aircraft Order: A Game Changer for Indian Aviation

Note4Students

From UPSC perspective, the following things are important:

Prelims level: NA

Mains level: Indian Aviation Sector

aviation india

Central Idea

  • IndiGo, India’s largest airline, recently made history by placing an order for 500 planes, setting a new world record.
  • This landmark deal comes on the heels of Air India’s order for 470 aircraft a few months ago.
  • This article explores the transformative impact of IndiGo’s order and its implications for the future of Indian aviation.

IndiGo’s Order and its Implications

  • Doubling the Current Fleet: IndiGo’s order brings their total aircraft count to 1,330, almost twice the size of the current Indian aviation market.
  • Fueling Connectivity: Expanded capacity expected to enhance domestic and international connectivity.
  • Global Impact: Improved direct connectivity across Europe and South Asia as a result of the record-breaking order.

Indian Aviation Sector: A quick recap

aviation

  • Big market: India ranks as the third-largest domestic aviation market globally, with significant annual domestic air traffic.
  • Lower air travel penetration: India has the potential to become the third-largest international aviation market, given the substantial gap between current air travel penetration and potential demand.
  • Shift in Market Dynamics: Competition is intensifying with the emergence of strong players like Air India and Akasa Air, challenging IndiGo’s dominance.
  • Targeting New Destinations: IndiGo eyes expansion into Europe and East Asia, while Air India aims to surpass foreign carriers in flights to the US and Europe.
  • Focus on Multiple International Hubs: The government encourages airlines and airports to develop multiple international hubs within India.

Duopoly under discussion

  • IndiGo’s Market Share: Holding a commanding 61.4% market share according to the Directorate General of Civil Aviation.
  • Air India Umbrella: Combined share of Air India, Vistara, AirAsia India, and Air India Express at 26.3%.
  • Duopoly: IndiGo and Air India’s combined market share of 88% signals a duopoly in the industry.
  • Challenges for Competitors: Limited means and strong promoter groups leave other airlines struggling to scale up.

Impact on Air Fares

  • Unregulated Air Fares: Unregulated air fares in India subject to market dynamics.
  • Supply Chain Issues: Delivery delays due to supply chain challenges impacting fares.
  • Temporary Suspension Impact: Go First’s operational suspension leading to reduced flight availability and higher air fares.
  • Long-Term Stabilization: Potential for fares to stabilize as airlines increase capacity over time.

Future Aircraft Orders

  • Anticipated Orders: CAPA India predicts Indian airlines to order 1,500-1,700 planes in the next two years.
  • Recent Orders: IndiGo and Air India have already placed orders for 970 aircraft.
  • New Entrant: Expectations of additional orders from Akasa Air, a new airline in India.
  • Conversion Options: Air India’s 370 optioned aircraft can be converted into firm orders later.
  • Replacing Aging Fleet: Older aircraft retiring necessitate new orders for efficient and modern replacements.

India’s Appeal to Airlines

  • Economic Growth and Rising Middle Class: India’s fast-growing major economy and expanding middle class create strong air travel demand.
  • Untapped Market Potential: Under-penetrated aviation market offers significant growth opportunities for airlines.
  • Airport Development: Construction of new airports across India fuels the demand for air travel.
  • Resilient Recovery: Surpassing pre-COVID passenger numbers, indicating a resilient bounce-back in the sector.

Challenges Faced by Indian Aviation

  • Debt Burden: Air India’s acquisition by the Tata Group poses the challenge of raising substantial funds, given the airline’s existing debt.
  • Financial Implications: Securing a loan of the required magnitude may prove challenging, impacting the financial viability of the deal.
  • Make-in-India Clause: The inclusion of a Make-in-India clause in the final agreement is crucial to ensuring direct economic benefits for the Indian economy.
  • Potential Concerns: Without adequate provisions, India may become a mere customer of goods without reaping significant economic advantages.
  • Costly Operational Environment: The Indian aviation industry grapples with high operating costs, including fuel expenses, airport fees, and taxes, which can impact profitability.
  • Profitability Concerns: The industry needs to address these cost challenges to maximize the returns from the influx of new aircraft.
  • Outdated Infrastructure: Obsolete air traffic control systems, inadequate ground support services, and limited airport capacity pose barriers to efficient operations.
  • Regulatory Framework Limitations: The industry faces difficulties due to regulatory complexities and limitations that hinder growth and innovation.

Conclusion

  • IndiGo’s record-breaking aircraft order, coupled with Air India’s recent purchase, is poised to revolutionize the Indian aviation industry.
  • With increased capacity and enhanced connectivity, this landmark development is set to propel economic growth and benefit both domestic and international travellers.
  • As India’s economy continues to thrive and air travel demand remains strong, airlines are optimistic about the future, heralding a dynamic era for the Indian aviation sector.
June 24 2023


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

Ministry of Civil Aviation launches UDAN 5.1

Note4Students

From UPSC perspective, the following things are important:

Prelims level: UDAN 5.1

Mains level: Read the attached story

udan

Central Idea

  • The Ministry of Civil Aviation has launched UDAN 5.1, an extension of the Regional Connectivity Scheme (RCS) – Ude Desh Ka Aam Nagrik (UDAN), to enhance connectivity to remote areas of India.

What is UDAN 5.1?

  • This round specifically focuses on helicopter routes, aiming to achieve last mile connectivity.
  • It allows operators to operate routes where one of the origin or destination locations is in a priority area, such as hilly regions, islands, or North East states.

Features of the scheme

  • Expanded Scope of Operations: Operators can now operate routes where one of the origin or destination locations is in a priority area, compared to the previous requirement of both points being in priority areas.
  • Reduced Airfare Caps: Airfare caps for helicopter flights have been reduced by up to 25%, making flying in helicopters more affordable for passengers.
  • Increased Viability Gap Funding (VGF) Caps: VGF caps for operators using single and twin-engine helicopters have been substantially increased to enhance the financial viability of operating the awarded routes.
  • Coverage Expansion: UDAN 5.1 aims to cover a significantly larger number of routes compared to previous rounds, further extending the benefits of air connectivity to unserved regions.

Importance of UDAN 5.1

  • Democratization of Air Travel and Last-Mile Connectivity: UDAN 5.1 reflects the deeper democratization of air travel, with a focus on providing last-mile connectivity to remote regions of India.
  • Consultations and Stakeholder Engagement: The current version of the scheme has been designed after extensive consultations with all stakeholders, including helicopter operators.

Way Forward

  • Successful Implementation: Ensure effective implementation of UDAN 5.1, considering the expanded scope of operations, reduced airfare caps, and increased VGF caps.
  • Collaboration with Operators: Foster collaboration and engagement with helicopter operators to optimize last-mile connectivity and promote the growth of the helicopter segment in the civil aviation industry.
  • Monitoring and Evaluation: Establish a robust monitoring and evaluation mechanism to assess the impact of UDAN 5.1 on remote regions, air travel affordability, and economic development.
  • Promoting Tourism: Leverage the increased helicopter penetration to boost tourism in remote areas, thereby supporting the hospitality industry and local economies.
  • Future Expansion: Continuously assess the potential for further expansion of the UDAN scheme, considering new routes and modes of transportation to improve connectivity to underserved regions of India.

 

Back2Basics:All Versions of UDAN Scheme

Launch Date Focus Category Distance Length Cap Viability Gap Funding Cap Exclusivity Period
UDAN 1.0 April 27, 2017 Category 1 (19-78 Seats) 500 km 70% for Cat-1, 90% for Hilly States, J&K, Ladakh, NE and Island regions 3 years 10 years
UDAN 2.0 November 16, 2018 Category 1 (19-78 Seats) 500 km Same as UDAN 1.0 3 years 10 years
UDAN 3.0 November 8, 2019 Category 1 (19-78 Seats) 800 km Same as UDAN 1.0 3 years 10 years
UDAN 4.0 December 3, 2020 Category 1 (19-78 Seats) 1,200 km Same as UDAN 1.0 1 year 10 years
UDAN 5.0 September 1, 2021 Category 2 (20-80 Seats) and 3 (>80 Seats) No restriction 60% for Priority Areas, 20% for Non-Priority Areas 1 year 10 years

 

 

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May 26 2023


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

International Aviation Safety Assessment (IASA) Program

Note4Students

From UPSC perspective, the following things are important:

Prelims level: IASA Program

Mains level: Not Much

Central idea

  • The Federal Aviation Administration (FAA) of the US has retained the “Category 1” status for India’s aviation safety oversight following a review.
  • The FAA uses the International Aviation Safety Assessment (IASA) program to determine whether a country’s oversight of its airlines that operate or wish to operate to the US or enter into codeshare partnerships.

What is the IASA Program?

  • The International Aviation Safety Assessment (IASA) program is conducted by the U.S. Federal Aviation Administration (FAA).
  • The program evaluates the safety oversight of civil aviation authorities in countries worldwide.
  • It determines whether a country’s oversight of its airlines that operate or wish to operate to the U.S. or enter into codeshare partnerships with U.S. carriers comply with safety standards established by the UN International Civil Aviation Organization (ICAO).
  • The IASA program focuses on three broad areas, including personnel licensing, operation of aircraft, and airworthiness of aircraft.
  • Countries are rated as Category 1 if they comply with international safety standards, or Category 2 if they do not comply with international safety standards.
  • The IASA program is conducted over a one-year period, which includes physical audits and a further review.

India’s commitment to aviation safety

  • The assessment by the ICAO as well as the FAA is a testimony to India’s commitment of having an effective safety oversight for its civil aviation system.
  • In November 2021, the ICAO conducted an audit, and India scored an Effective Implementation (EI) of 85.65%, an improvement from the previous EI of 69.95%.

 


 

April 13 2023


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

What caused the great Indian Airport jam?

Note4Students

From UPSC perspective, the following things are important:

Prelims level: NA

Mains level: Airport traffic management

airport

As more passengers take to the skies, airports in India’s top cities—Delhi, Mumbai, and Bengaluru—are witnessing heavy traffic.

What is causing congestion at airports?

  • There are lengthy queues at airport entry, check-in counters, security, and immigration.
  • There is crowding at baggage claim areas too.
  • This is the result of an unexpected surge in demand for air travel because of the holiday season—the last two years saw muted demand during this period because of the pandemic.
  • Air traffic has been 1-7% above pre-covid levels of 4 lakh daily flyers for the past 10 days.
  • Consequently, the personnel strength of CISF at check-in, the number of X-Ray machines and automatic trays for security, as well as baggage belts, have fallen short in handling the demand.

Which airports are most affected?

  • The congestion is more severe at airports with maximum connectivity such as Delhi, Mumbai, Bengaluru, and Hyderabad.
  • The worst-hit is Delhi—the busiest airport in India and 10th busiest in the world.
  • Delhi handles the largest share of international as well as domestic air traffic in the country with a 27% share in international segment for the country and 20% in overall air traffic in India.
  • The airport, with three terminals, has a capacity to handle around 70 million passengers per annum.
  • Over the last 10 days, the airport has handled over 190,000 passengers daily, which is close to its full capacity.

Is airport congestion an India-specific problem?

  • Globally, air travel continues to face disruptions.
  • Europe’s busiest airport, London Heathrow, needs to hire around 25,000 staff to manage peak hours.
  • Schiphol in Amsterdam has imposed a 20% cap on capacity to manage traffic.
  • The aviation industry laid off thousands of people during the pandemic, and expects staff strength to realign by mid-2023.

What is being done to decongest airports?

  • The aviation ministry has recommended a reduction in the number of flights and more manpower at all check-in and baggage drop counters.
  • It has sought for increasing the number of X-ray machines and baggage trays for security check.
  • The government will also analyse manpower requirements at immigration counters and, if required, additional personnel will be deployed.
  • IndiGo, the largest airline in India, has asked fliers to report 3.5 hours early for domestic flights from Delhi.

Easing the airport congestion  

  • There is no immediate solution, and the government’s action plan will only bring temporary relief. Increasing the number of personnel at entry, security, and immigration will take time.
  • Higher usage of the contactless travel platform—Digi Yatra—for passengers without check-in luggage is expected to ease the congestion a bit.
  • Cities like Delhi and Mumbai need additional infrastructure.
  • However, the Jewar airport in Noida and the Navi Mumbai airport are expected to be operational only by 2024.

 

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December 15 2022


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

India leaps in to ICAO Aviation Safety Rankings

Note4Students

From UPSC perspective, the following things are important:

Prelims level: ICAO Ranking

Mains level: Aviation safety in India

icao

In the rankings by the International Civil Aviation Organisation (ICAO), India is now at the 48th position, a “quantum leap” from the 102nd rank it had in 2018.

ICAO Assessment

  • Under the ICAO standards, the Effective Implementation (EI) of six areas were assessed. They are LEG, ORG, PEL, OPS, AIR and AGA.
  1. LEG is Primary Aviation Legislation and Specific Operating Regulations;
  2. ORG is Civil Aviation Organisation;
  3. PEL is Personnel Licensing and Training;
  4. OPS is Aircraft Operations;
  5. AIR is Airworthiness of Aircraft; and
  6. AGA is Aerodrome and Ground Aid.

How has India fared in ICAO ranking?

  • With a score of 85.49 per cent each, India and Georgia are at the 48th position.
  • Neighbouring Pakistan is at the 100th spot with a score of 70.39 per cent.

Global scenario

  • The rankings are topped by Singapore with a score of 99.69 per cent.
  • It is followed by the UAE at the second position with a score of 98.8 per cent and the Republic of Korea is at the third place (98.24 per cent).
  • Others in the top ten are France (4th; 96.42 per cent), Iceland (5th; 95.73 per cent), Australia (6th; 95.04 per cent), Canada (7th; 94.95 per cent), Brazil (8th; 94.72 per cent), Ireland (9th; 94.6 per cent) and Chile (10th; 93.9 per cent).

What is ICAO?

  • The ICAO is a specialized agency of the UN that coordinates the principles and techniques of international air navigation.
  • It fosters the planning and development of international air transport to ensure safe and orderly growth.
  • ICAO headquarters are located in the Quartier International of Montreal, Quebec, Canada.

Functions of ICAO

  • Standardization: The ICAO Council adopts standards and recommended practices concerning air navigation, its infrastructure, flight inspection, prevention of unlawful interference, and facilitation of border-crossing procedures etc.
  • Investigation standards: ICAO defines the protocols for air accident investigation that are followed by transport safety authorities in countries signatory to the Chicago Convention on International Civil Aviation.

 

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December 5 2022


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

What is Wet Leasing of Aircraft?

Note4Students

From UPSC perspective, the following things are important:

Prelims level: Wet and dry leasing

Mains level: Not Much

wet

In efforts to boost international air traffic, the civil aviation ministry has allowed Indian airlines to take wide-body planes on wet lease for up to one year.

What is Wet Leasing?

  • Wet leasing means taking the plane along with the operating crew and engineers, while dry leasing refers to taking only the aircraft on rent.
  • The technical term for wet leasing is ACMI which stands for aircraft, crew, maintenance and insurance.
  • These are the aspects of the operation that the wet lease airline takes care of, while the airline client will still be responsible for paying for direct operating costs.
  • This includes catering and fuel as well as fees such as airport fees, ground handling charges and navigation fees.
  • Operations of an aircraft on wet lease are more difficult for the Directorate General of Civil Aviation (DGCA) to monitor, which is why it is allowed for shorter durations.

What are the new rules?

  • The rules had been relaxed, allowing the wet leasing for a year as opposed to the six months permitted so far.
  • Dry leasing was already allowed for up to 12 months, with the option to extend the contract for 12 another year.

Why has govt extended limit now?

  • The civil aviation ministry’s decision came on a request by the country’s largest airline, IndiGo.
  • It plans for inducting B777 aircraft on wet/damp lease basis during the current winter schedule.
  • The relaxation will be available to all Indian carriers and will be granted based on international destinations they wish to operate to.
  • With Covid-related restrictions lifting, international travel is lifting up, and the wet leasing will allow airlines to fly more routes and rounds.
  • Wide-body planes can accommodate more passengers, thereby boosting revenue.

Why airlines lease aircraft?

  • About half the planes used by airlines around the world are not owned but leased.
  • Airlines and aircraft operators prefer leasing planes in order to avoid massive lump sum payments that buying them would entail, and to quickly increase capacity, perhaps temporarily, on certain routes or sectors.

 

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November 29 2022


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

Civil Aviation Ministry notifies draft Aircraft Security Rules, 2022

Note4Students

From UPSC perspective, the following things are important:

Prelims level: NA

Mains level: Read the attached story

The Ministry of Civil Aviation has notified the draft Aircraft Security Rules, 2022 which enable the aviation security regulator, Bureau of Civil Aviation Security (BCAS) to impose penalties upto ₹1 crore on airports and airlines for violation of security measures.

Why such move?

air

  • India’s civil Aviation Sector is facing a unique crisis a crisis of credibility and safety.
  • Some of the issues are-
  1. The windshield of a go air flight cracks mid-air, two go air flights suffer engine snags, a flight could not take off because of a dog on the runway.
  2. A bird was found in the cockpit of an Air India Express cruising at 37 000 feet.
  3. One flight suffered an engine snag another noticed smoke in the cabin.
  4. Luggage is not being loaded or is going missing.

Draft Aircraft Security Rules, 2022

  • The rules will supersede Aircraft Security Rules, 2011 and were necessary after Parliament passed Aircraft Amendment Act, 2020 in September 2020.
  • It gives statutory powers to BCAS, along with the Director General of Civil Aviation and Aircraft Accident Investigation Bureau.
  • These allow them to impose penalties which could only be imposed by courts earlier.
  • The amendment were necessary after the UN aviation watchdog, International Civil Aviation Organisation (ICAO), raised questions about the three regulators functioning without statutory powers.

Key features

  • Hefty fines: Once the draft Rules are finalised, the BCAS can impose a fine of ₹50 lakh to ₹1 crore (depending on the size of the company) on airports and airlines if they fail to prepare and implement a security programme.
  • Security clearance: They can commence operations only after seeking a security clearance.
  • Regulating passenger behaviour: Individuals will also face penalties ranging from ₹1 lakh to ₹25 lakh depending on the nature of offence.
  • Data security: In order to deal with cyber security threats, the rules also require each entity to protect its information and communication technology systems against unauthorised use and prohibit disclosure.
  • Unburdening the CISF: The draft rules now authorise airports to engage private security agents instead of CISF personnel at “non-core areas” and assign security duties as per the recommendation of the National Civil Aviation Policy, 2016.

 

Tap to read more about: India’s ailing Civil Aviation Sector.

 

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November 25 2022


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

Aviation sector in India: Issue and Challenges

Note4Students

From UPSC perspective, the following things are important:

Prelims level: Not much

Mains level: Paper 3- Indian aviation sector- challenges and opportunities

What is the issue?

Policymakers ought to recognise the country’s untapped potential and work towards dismantling the many hurdles.

What is the significance of aviation sector?

India is the world’s third-largest market in aviation sector.

  • Aviation is integral to equitable economic growth, for a country to be globally competitive and to change the situation of poverty and unemployment.
  • Passenger airlines and air cargo overcome geography and connect remote areas that are alienated from the mainstream.
  • They can drive investment deep into the country, giving people access to markets.
  • They also boost tourism, which is the largest employment generator in the unorganised sector.

What is the status of aviation sector in India?

  • Pre-economic reform period– India had only two airlines – Air India and Indian Airlines.
  • Post 1991 reforms– The reforms that opened up the aviation sector in 1991 and ended the licence raj and the monopoly of Indian Airlines and Air India changed the sector.
  • Numerous private sector airlines were given the licence to fly, but Jet Airways and Sahara, survived, resulting in cartelisation.
  • The concept of low cost airlines in India took shape in 2003 which overcame the cost barrier.
  • Sadly, Indian aviation has become ‘the sick man of India’.

What are the barriers in Indian aviation sector?

  • Per capita consumption of air tickets – The number of Indians who buy air tickets in 2019 is 140 million of which 35 million to 40 million frequent flyers form the bulk of ticket buyers.
  • It translates to less than 4% of the population who can afford air travel, placing India just alongside some poorer African countries, in terms of the per capita consumption of air tickets.
  • Factors affecting the growth of aviation sector– The growth of aviation has been affected by
    • Choking regulations
    • Tough entry barriers for new entrants
    • High fuel prices on account of sky high taxes
    • Inefficient public sector airports that pave the way for monopoly airports
  • Frequent and knee-jerk changes point to the absence of a long-term visionary strategic policy for the entire gamut of sectors in aviation.

How efficient are government schemes in the development of the airline sector?

  • Boosting entrepreneurship- Start-up India initiative was started with the objective of supporting entrepreneurs, building a robust startup ecosystem and transforming India into a country of job creators.
  • Regional connectivity– Ude Desh Ka Aam Naagrik (UDAN) scheme aims to connect small and medium cities with big cities through air service.
  • Low cost airlines– UDAN plans to connect the underserved airports to key airports through flights that will cost Rs 2,500 for per hour flight.
  • Comprehensive development– The National Civil Aviation Policy 2016 aims to take flying to the masses and covers 22 areas of the Civil Aviation sector.

What reforms are needed?

  • Reforms in all sectors– It is critical to understand that for passenger airlines to grow, there have to be reforms in all areas of aviation – air cargo, airports, aviation fuel taxes and Maintenance, Repair and Overhaul (MRO).
  • Updated laws– India’s Aircraft Act, 1934 and Aircraft Rules, 1937 need to be updated to keep pace with modern technology in aerospace, increasing costs to the industry and ultimately affecting passenger growth.
  • Overhaul DGCA – India’s statutory regulatory authority, the Directorate General of Civil Aviation (DGCA), needs to be modernised, well-staffed, motivated and incentivized.
  • Need for aviation professionals– There need to be aviation professionals in charge rather than the ubiquitous bureaucrat from the Indian Administrative Service.
July 6 2022


Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

[pib] UDAN Scheme awarded PM Award for Excellence in Public Administration

Note4Students

From UPSC perspective, the following things are important:

Prelims level: UDAN Scheme

Mains level: Success of the UDAN Scheme

The Ministry of Civil Aviation’s flagship Regional Connectivity Scheme UDAN (Ude Desh ka Aam Nagrik) has been awarded Prime Minister’s Award for Excellence in Public Administration this year.

What is UDAN Scheme?

  • The Ude Desh Ka Aam Nagrik (UDAN) scheme is a low-cost flying scheme launched with the aim of taking flying to the masses.
  • The first flight under UDAN was launched by the PM in April 2017.
  • It is also known as the regional connectivity scheme (RCS) as it seeks to improve air connectivity to tier-2 and tier-3 cities through revival of unused and underused airports.

Working of the Scheme

  • Airlines are awarded routes under the programme through a bidding process and are required to offer airfares at the rate of ₹2,500 per hour of flight.
  • At least 50% of the total seats on an aircraft have to be offered at cheaper rates.
  • In order to enable airlines to offer affordable fares they are given a subsidy from the govt. for a period of three years.

Success of the scheme

  • In a short span of 5 years, today 419 UDAN routes connect 67 underserved/unserved airports, including heliports and water aerodromes, and over 92 lakh people have benefited from it.
  • More than 1 lakh 79 thousand flights have flown under this scheme.
  • UDAN scheme has immensely benefitted several sectors pan-India including Hilly States, North-Eastern region, and Islands.
  • The scheme also led to development of new Greenfield Airports such as Pakyong near Gangtok in Sikkim, Tezu in Arunachal Pradesh, and Kurnool in Andhra Pradesh.
  • Krishi UDAN Scheme launched in August 2020, on international and national routes has assisted farmers in transporting agricultural products.

Issues with the working

  • Discontinuance: In reality, some of the routes launched have been discontinued as most of the routes awarded under UDAN are not active.
  • On-paper Ambitions: UDAN was expanded to provide improved connectivity to hilly regions and islands through helicopters and seaplanes. However, they mostly remain on paper.
  • The reasons include:
  1. Failure to set up airports or heliports due to lack of availability of land
  2. Airlines unable to start flights on routes awarded to them or finding the routes difficult to sustain
  3. Adverse impact of the COVID-19 pandemic

Various challenges

  • Lack of funds: Many small airlines await infusion of funds, to be able to undertake maintenance of aircraft, pay rentals to lessors, give salaries to its staff, etc.
  • Maintenance issue: Many players don’t have more than one or two planes and they are often poorly maintained. New planes are too expensive for these smaller players.
  • Availability of pilots: Often, they also have problems with the availability of pilots and are forced to hire foreign pilots which costs them a lot of money and makes the business unviable.
  • Competition: Only those routes that have been bagged by bigger domestic players such as IndiGo and SpiceJet have seen a better success rate.

Way forward

  • The govt offers subsidies for a route for a period of three years and expects the airline to develop the route during this time so that it becomes self-sufficient.
  • Airlines need an extension of the subsidy period for their operational continuity.
  • Due to the rise in COVID cases, travel restrictions and passenger safety too needs to be taken into consideration in the loss-making of such airlines.

 

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April 21 2022