NEW
DELHI: The government is readying to bring in a new overarching law that will
help ease investment flows into India's ailing civil aviation sector, while
protecting interests of passengers and ensuring safety.
The New Civil Aviation Act of 2012 will replace the Aircraft Act of 1934, which does not cover critical issues such as viability and security, and has been severely criticised in safety audits conducted by global aviation bodies.
At a time when the ruling Congress party is seeking the support of its coalition partners to allow foreign airlines to invest in domestic carriers, the government also wants to ensure that prospective investors are not put off by the archaic law that has undergone numerous incremental amendments over the past 78 years.
While India has become the world's ninth biggest civil aviation market, which is expected to cater to about 180 million passengers by 2015, the law governing the sector focuses primarily on aircraft manufacturing and operations. The new law will be more in sync with the times and attract investors to a market that is clocking an annual growth of 20%, aviation ministry officials say.
The New Civil Aviation Act of 2012 will replace the Aircraft Act of 1934, which does not cover critical issues such as viability and security, and has been severely criticised in safety audits conducted by global aviation bodies.
At a time when the ruling Congress party is seeking the support of its coalition partners to allow foreign airlines to invest in domestic carriers, the government also wants to ensure that prospective investors are not put off by the archaic law that has undergone numerous incremental amendments over the past 78 years.
While India has become the world's ninth biggest civil aviation market, which is expected to cater to about 180 million passengers by 2015, the law governing the sector focuses primarily on aircraft manufacturing and operations. The new law will be more in sync with the times and attract investors to a market that is clocking an annual growth of 20%, aviation ministry officials say.
"Changing
the FDI norms in
aviation will enable airlines to consider the Indian market," a senior
official said, adding, "However, to convert intent to investments, they
still need to be convinced of a stable policy regime with rules and regulations
that are relevant to global market realities."
The ministry is keen the new law should reflect international best practices, as the present law covers only a part of the modern civil aviation system. "Even senior advocates defending the government in myriad court cases have held that civil aviation in the country continues to be regulated by antiquated laws," an official said.
"The major concern today is of regulating safety, efficiency and viability in all aspects of aviation, with provisions to include areas like passenger protection and air navigation services," the official added.
Experts have welcomed the creation of a new law rather than piecemeal amendments to the existing one. "Having a 1934 law to govern an industry in 2012 is depressing," said Kapil Kaul, CEO (South Asia) at the Centre for Asia Pacific Aviation, "The last time the law was being amended in 2008, we told the Parliamentary committee to scrap it altogether and create a new statute."
The ministry is keen the new law should reflect international best practices, as the present law covers only a part of the modern civil aviation system. "Even senior advocates defending the government in myriad court cases have held that civil aviation in the country continues to be regulated by antiquated laws," an official said.
"The major concern today is of regulating safety, efficiency and viability in all aspects of aviation, with provisions to include areas like passenger protection and air navigation services," the official added.
Experts have welcomed the creation of a new law rather than piecemeal amendments to the existing one. "Having a 1934 law to govern an industry in 2012 is depressing," said Kapil Kaul, CEO (South Asia) at the Centre for Asia Pacific Aviation, "The last time the law was being amended in 2008, we told the Parliamentary committee to scrap it altogether and create a new statute."
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