Introduction
On 17 November, 2024 a total of 5,05,412 domestic passengers departed across the country via 3100 planes in a single day setting new records for Indian Civil Aviation Industry and creating mark across the global aviation landscape. The past decade has been a witness to the initiatives taken by the government for the development in this industry which has propelled it towards becoming the third largest domestic aviation market in the world. Initiatives such as the Regional Connectivity Scheme-Ude Desh ke Aam Nagrik (RCS-UDAN) and doubling the number of operational Airports i.e., from 74 in 2014 to 157 in 2024 to increase accessibility have boosted the industry to new heights. The Indian aviation industry is experiencing significant growth. While the sector is flourishing, there is immense potential for further expansion, particularly with the government's ambitious target of increasing the number of airports to between 350 and 400 by the year 2047. For the past 90 years, the Indian Civil Aviation Industry was regulated by the Aircraft Act of 1934 and its rules – a colonial period legislation which underwent several amendments to keep up with the changing needs and necessities of the civil aviation industry. These amendments along with the government's aim to promote, regulate and develop the industry amidst skyrocketing demands led to the need of a new legislation which was introduced on July 2024 named- The Bhartiya Vayuyan Vidheyak, 2024. While the Lok Sabha passed the Act on 9 August, 2024, the same was passed in the Rajya Sabha on 5 December, 2024. The advent of 2025 witnessed the enactment of the Bhartiya Vayuyan Adhiniyam, 2024 (BVA), succeeding the Aircraft Act, 1934. This legislative reform, notified by the Central Government, modernizes India's aviation sector by aligning it with contemporary needs and global standards. The BVA, which came into force on 1st January, 2025, effectively re-enacts the 1934 Act to address the evolving demands of the Indian aviation industry.
Authorities in the Indian Civil Aviation Industry
The Indian Civil Aviation Industry is regulated by three organisations which play varied but integral role in the operation and facilitation of the aircrafts. The Aircraft Act of 1934 gives the Central government the power to constitute the Director General of Civil Aviation (DGCA)1, Bureau of Civil Aviation Security (BCAS)2 and Aircrafts Accidents Investigation Bureau (AAIB)3. These bodies although were functioning for the past several years were inserted in the Act via the 2020 Amendment Act and hence are recognized as Statutory bodies.4
The BVA provides Central Government the power to constitute these bodies. The basic function of these organisations are as follows:
- DGCA: Body shall carry out Safety Oversight and Regulatory functions as per the provisions under this Act and Rules provided therein.5
- BCAS: Body shall carry out the Regulatory and Oversight functions relating to Civil Aviation Security.
- AAIB: Body shall carry out functions in relation to investigation of Aircraft Accidents or incidents as specified under this Act and rules therein.
It is essential to note that the BVA provides for certain additional powers to the Director General of DGCA6 and BCAS7 for effectively regulating the industry as compared to the predecessor Act. Be as it may, the Central Government acts in a supervisory capacity and has the power to issue directions to each of these organisations.
The New Legislation has been passed by the parliament after several amendments had been done to the Aircraft Act, 1934. But the need arose to culminate all the amendments and incorporate new changes in a new legislation leading to the formation of BVA.
Taking off- The Bhartiya Vayuyan Adhiniyam, 2024
The Aircraft act of 1934 has been governing the Indian Civil Aviation Industry for the past 90 years but still there are several lacunas which are prevalent in the Act which led to the need of the new legislation. It is essential for us to understand the changes which have been implemented under the new law.
They are as follows:
- Changing Objectives
The objectives of the 1934 Act stated that it was enacted for the purposes of controlling the manufacture, possession, use, operation, sale, import and export of Aircrafts. By analyzing and understanding the dynamicity of the Civil Aviation Industry the government has chosen to regulate the Industry rather than just control it to ensure stability and consistency. The terms design and maintenance in respect to aircrafts have been added to the objectives of the act along with their requisite definitions under Section 2 which were absent in the previous act.
- Manufacturing of Aircrafts
While the objectives of the Indian Aircraft Act did provide for controlling the manufacture of the Aircrafts, the term was not defined under the Act. The successor act has been drafted in consonance with the policies of the government such as, Ease of doing business and Make in India. With rising demands and accessibility, the government aims to manufacture aircrafts locally in partnership with global aerospace players bolstering the country's economy and position in the aerospace market. For instance, Airbus and Tata jointly produced an aircraft named C295 on October 2024 which was wholly produced and manufactured in India and soon would be exported to different parts of the world. This also pushes the objective of creating a self-reliant India (Atmanirbhar Bharat).
- Aligning Domestic Laws with International Conventions
The Convention on International Civil Aviation (Chicago Convention) which was signed in 1944 and acted as a crucial legislative document preserving friendship and understanding among the nations so as to facilitate ease in air travel. The Indian Aircraft Act was bought in consonance to the convention via amendments made to it. The convention provides the States exclusive sovereignty over their respective airspaces8 and establishes principles and arrangements for safe and orderly international air navigation.9 The BVA emphasis the need of compliance with the convention and has provided the government the power to make such rules as may be necessary which would be in consonance with the Act.10 The BVA also states that for persons engaged in operation and maintenance of aircraft shall be issued with Radio Telephone Operator (Restricted) Certificate and license in consonance with the International Telecommunication Convention.
- Issuing the Radio Telephone Operator (Restricted) Certificate
The term 'radio equipment' has been defined by the Telecommunication Act, 202311 to mean a telecommunication equipment which is used or is capable of telecommunication by means of Hertzian or radio waves. Section 46 of the Telecommunication Act further authorizes the State Government to grant certification for the usage of it for aircrafts as per the Act of 1934. Hence, the certificate had to be obtained from the Department of Telecom under the act of 1934. The BVA on the other hand provides special powers under Section 34 to issue these Certificates to the persons engaged in operation and maintenance of aircraft expediently hereby promoting ease of doing business.12
- Additional Appellate Layer
In cases of Adjudication of Disputes, the Aircrafts Act provided that when a person is aggrieved by the order pronounced by the Designated officers, (as appointed by the Central Government for the Adjudication of Disputes) he can file an appeal to the appellate officer having jurisdiction in the relevant matter and having a rank higher to the designated officer pronouncing the judgement. Post this the appeal shall lie to the Central Government.13 On the other hand the BVA inserts an additional appellate layer i.e., if the person is aggrieved by the order of the first appellate officer too, then he shall apply to the Second Appellate officer.14 Post which an appeal shall lie to the Central Government. This additional layer would help in delivering justice and resolving the matter swiftly and provide the parties an additional platform to avail recourse.
These are some of the major changes which can be noted between the Aircraft Act of 1934 and the newly passed act, The BVA. The Aircraft Act since its inception had been amended approximately 21 times to keep it effective. But due to multiple amendments there was an increase in inconsistency and thereby created a lot of confusion in the industry giving rise to the need of a New Act. The Act herein plays an essential role in regulating and controlling each and every aspect of the Indian Civil Aviation Industry and with an increased pace of modernization the need was evident.
A Flight in the Right Direction
The BVA is a welcome legislation in the current times. With India standing at the forefront of technology and development, the new act encapsulates the whole ecosystem of the Aviation Industry. With the implementation of Make in India policy and reducing regulatory challenges, India has opened its doors for foreign players to start manufacturing aircrafts in India thereby generating employment opportunities for the industry. This helps India become more self-reliant in aviation technology. The new law also wants to improve the facilities for repairing and maintaining airplanes (Maintenance, Repair and Overhaul Services) within India to make the aviation industry stronger in the long run. Easing of compliances and changing the approach from controlling the Industry to regulating it makes it more appealing to the investors. The government's aim in making airports accessible and implementing initiatives such as RCS-UDAN make the civil aviation industry a market with great potentiality for growth.
It is pertinent to note that the BVA has been drafted to be in consonance with the International Conventions so as to follow international standards and recommended practices. The Central Government too has powers make rules as may be deemed necessary for carrying out the needs of the convention. The government has the power of economic regulation in this industry empowering them to make rules for keeping a check on the same.15 The 2020 amendment act, alongside establishing the DGCA, BCAS, and AAIB has also significantly increased the maximum penalty amount from Rs. 10 Lakhs to Rs. 1 Crore. This substantial increase in penalties aims to enhance stringency and ensure strict compliance with aviation rules and regulations by aviation operators.16 The amendment has been ingrained as a whole in the BVA with certain changes such as in the cases of appeals.
With the addition of an appellate layer, the dispute resolution becomes simpler and provides an additional opportunity for the parties to put forth their claims before the Central Government which has the power to adjudicate over them under BVA. Also, in case of any orders passed by the DGCA or Director General of BCAS direct appeal shall lie to the Central Government rather than approaching the first appellate officer and second appellate officer.17 Hence, it can be seen that the Central Government has immense powers while regulating and controlling the industry as every appeal in case of grievances against orders passed by the organization or Designated Authority can be filed against it. But a negative connotation which arises herein is that the organizations function under the authority of Central Government and any appeal against these organizations too has to be filed under it creating a hindrance and a possibility of presence of bias while adjudication of disputes. The principle of separation of powers is absent in this aspect and hence there is a need to remedy the same.
On the other hand, by recognizing the substantial growth in both the Indian and global civil aviation markets, the new act aims to facilitate and promote further development within the sector. This is achieved by prioritizing increased accessibility through the formulation of policies that cater to the diverse needs of the entire Indian population.
In Sum
With a surge in the number of fliers across the country and increase in accessibility to this mode of transport, it is essential that there shall be effective laws and regulations which would help not only in regulating and controlling the civil aviation industry but also contribute to its growth and development. The new legislation provides a perfect balance between both. It aims in creating an overall aviation ecosystem while systematically providing for stringent laws and regulations governing the same. The government's policies such as RCS-UDAN and setup of UDAN cafes not only aim at making air travel cheap and accessible to every individual but facilitate in making the whole air travel experience affordable to them. Such policies and future plans along with the implementation of these New laws make the Indian Civil Aviation Industry an attractive market for Domestic as well as Foreign Investors. Hence, it can be said that the traverse from The Aircraft Act, 1934 to The Bhartiya Vayuyan Adhiniyam, 2024 is significantly more than just a name change.
Footnotes
1 Section 4A of the Aircraft Act, 1934.
2 Section 4B of the Aircraft Act, 1934.
3 Section 4C of the Aircraft Act, 1934.
4 The Aircraft (Amendment) Act, 2020.
5 Section 3(2) of the Bhartiya Vayuyan Adhiniyam, 2024.
6 Section 4 of the Bhartiya Vayuyan Adhiniyam, 2024.
7 Section 6 of the Bhartiya Vayuyan Adhiniyam, 2024.
8 Article 1 of the Convention on International Civil Aviation.
9 Article 37 of the Convention on International Civil Aviation.
10 Section 11(1) of the Bhartiya Vayuyan Adhiniyam, 2024.
11 Section 2(l) of the Telecommunications Act, 2023.
12 Section 11(2) of the Bhartiya Vayuyan Adhiniyam, 2024.
13 Section 10A of the Aircraft Act, 1934.
14 Section 33(3) of the Bhartiya Vayuyan Adhiniyam, 2024.
15 Section 10(2)(c) of the Bhartiya Vayuyan Adhiniyam, 2024.
16 The Aircraft (Amendment) Act, 2020.
17 Section 33(5) of the Bhartiya Vayuyan Adhiniyam, 2024.
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