Introduction
The aviation industry is undergoing a seismic shift and transformation. Once dominated by the manned aircrafts and centralized air traffic control, the 21st century skies are now shared with unmanned aircrafts including drones, electric vertical take-off and landing (eVTOL) vehicles, and AI-powered autopilot systems.
While these innovations hold transformative promises from urban air mobility, enhanced efficiency, reduced carbon footprints and critical medical drone deliveries. However, they also come with unprecedented legal and regulatory challenges. This blog explores how legal frameworks worldwide are evolving to govern these technologies and examine the liability considerations when things go awry.
The existing legal structures that govern aviation, most of which were developed in the post- World War II era, are ill equipped to handle the scale and scope of these disruptive technologies.
These new innovations are forcing all stakeholders including regulators, lawmakers, corporations, insurers, and legal practitioners to reimagine the entire ecosystem of aviation law, from licensing and certification to privacy, security, airspace management and tort liability.
In India and around the world, this demands not only legislative agility but also a deep re-examination of foundational principles and compliance in aviation law.
What Legal Frameworks Govern Aviation from the Chicago Convention to India's Drone Rules?
At the International level, the International Civil Aviation Organization (ICAO) oversees the Convention on International Civil Aviation, 1944 (commonly referred to as the Chicago Convention), which impacts and oversees the aviation industry.
The ICAO develops global standards and recommended practices that provide guidelines for civil aviation regulations in various countries. These standards and practices contain an array of topics, involving aircraft operations and airworthiness, in addition to licensing, accident investigation, and environmental concerns..
In India, the Directorate General of Civil Aviation (DGCA) serves as the national aviation regulatory authority. It implements and enforces the civil aviation requirements, policies, safety regulations, and operational licenses in line with ICAO mandates.
The Bharatiya Vayuyan Adhiniyam, 2024 (which replaced the Aircraft Act, 1934) together with the Aircraft Rules, 1937 now form the domestic legal foundation for aviation regulation in India.
Additionally, the Bureau of Civil Aviation Security (BCAS) addresses aviation security, while the Ministry of Civil Aviation develops national policy and international cooperation.
However, the entry of emerging technologies into this landscape has begun to expose the structural limitations of this traditional regime. These regulations were crafted for human- controlled aircraft, centralised air traffic systems, and large commercial operators not for fleets of autonomous drones, hybrid aircraft, or AI-piloted eVTOL taxis that fly low-altitude routes within city corridors.
What Legal and Regulatory Frameworks Apply to Emerging Aviation Technologies?
Aviation technology undergoes rapid innovation, which poses difficulties for the current perception and governance of the law.. Below are the major emerging technologies reshaping the aviation sector:
Unmanned Aerial Vehicles (UAVs) and Drones
Drones are perhaps the most widespread innovation, now used across sectors from surveillance, agriculture, and disaster relief to medical supply delivery. However, their proliferation raises questions regarding the airspace sovereignty, geofencing, payload regulation, and operator's accountability. The Indian Drone Rules, 2021 and Bharatiya Vayuyan Adhiniyam, 2024 marked a significant policy shift by liberalising the regulatory environment for civilian drone use.
The key compliance requirements for drones and UAV includes-
- The Drone categorization which is classified based on the weight (Nano, Micro, Small, Medium, and Large) with different restrictions.
- The digital sky platform, online portal for all drone-related approvals, registrations, and managing flight permissions.
- Third-party liability insurance is mandatory for most drone categories under Rule 44 of the Drone Rules, 2021. Nano drones are generally exempt from this requirement.
- All drones except specific nano drones require registration on DigitalSky and a UIN for traceability. A Remote Pilot Certificate (RPC) is mandatory for most drone operations. This certificate is issued by DGCA-authorised training organisations through the DigitalSky platform after training.
- Safety features such as No Permission, No Takeoff (NPNT), geo-fencing, and real-time tracking beacons are provided for in the Drone Rules, 2021. However, these are to be enforced by government notification with lead time, and are not yet universally mandatory.
- Most of the drones require a DGCA type Certificate for airworthiness and they must possess standard safety features such as GPS, return-to-home (RTH), anti-collision lights, and flight data logging.
Urban Air mobility (UAM) and eVTOLs
UAM encompassing electric Vertical Take-off and Landing aircraft, aims to provide on- demand, intra-city air transportation. This includes air taxis and aerial logistics.
Unlike drones, which are governed by a consolidated set of Drone Rules, the legal framework for UAM and eVTOLs is still evolving. The DGCA has issued specific guidance materials such as the Airworthiness Criteria for VTOL-capable Aircraft (AEAC 01/2024) and National Vertiport Guidance, and continues to align with ICAO, EASA, and FAA standards.
The DGCA is taking an active role in shaping India's rules for eVTOLs and urban air mobility. To make sure our regulations match international best practices from ICAO, EASA, and the FAA, the DGCA has set up six dedicated working groups. Each one focuses on a key area of eVTOL operations, including:
- Type Certification
- Crew Licensing
- Air Operator Permits
- UAS Traffic Management (UTM)
- Maintenance, Repair, and Overhaul (MRO)
The guidance material for Type certification of eVTOL aircraft (VCA) has been issued by DGCA, addressing the unique characteristics of eVTOLs, such as their hybrid propulsion systems and their ability to transition between vertical and horizontal flight.
The DGCA has also issued guidance material for the design, operation, and authorization of vertiports, covering aspects such as site selection and layout, minimum dimensions, obstacle limitation surfaces, and visual aids for safe landings and take-offs. In addition, new rules and standards for pilot licensing and training specific to eVTOL operations are actively being developed by DGCA's working group.
Operators of UAM services will require specific AOPs, similar to traditional airlines, ensuring operational capability and safety management.
Artificial Intelligence & Automation
With AI algorithms increasingly managing take-offs, landings, and navigation, the industry is moving toward single pilot or even fully autonomous aircraft. This brings uncertainty about whether existing airworthiness certifications and pilot licensing standards remain applicable.
Moreover, when an AI system malfunctions, determining the chain of liability whether it will be of software developer, hardware manufacturer or airline becomes complex.
Blockchain and IoT for Air Traffic Management
Blockchain is being used to store and manage aircraft maintenance logs and pilot records, while IoT devices enable real-time communication between aircraft and ground control.
These technologies require clear data protection standards. In India, the Digital Personal Data Protection Act, 2023 (DPDP Act) allows cross-border transfers by default, unless the government notifies restricted territories. Globally, frameworks such as the EU's GDPR impose stricter jurisdictional limits.
Liability Considerations in Aviation industry
One of the most contentious legal questions in aviation is who is liable when something goes wrong. Traditional liability models are totally based on pilot error, airline negligence, or aircraft defect are being upended in a world of AI, autonomy, and interconnectivity.
As AI, Automation, and unmanned aerial systems become embedded in modern aviation, the question of liability is more complex than ever. Traditionally, liability in aviation was assigned based on human error, most often involving the pilot or airline. However, in today's tech-driven ecosystem, where machines make autonomous decisions, the legal frameworks need to be evolved.
International treaties like the Montreal Convention of 1999 still provide the foundation for the airline liability related to passenger injury, baggage, and cargo loss. However, these treaties do not address AI systems, autonomous aircraft, or data breaches and as a result, new risks like algorithm failures, drone-related accidents, or cyber security threats fall into the gray area of legal framework.
In India, aviation liability is governed primarily by the carriage by Air Act, 1972, which adopts provisions from the Montreal Convention. Additionally, India regulates drones through the Drone Rules, 2021, overseen by DGCA. These rules assign liability to the drone operator and mandate insurance coverage. However, there are no current laws that specifically address AI- related failures or manufacturer liability in autonomous systems.
Conclusion
The skies of tomorrow are no longer defined by altitude alone, they are now defined by the complexities, interconnectivity, and automation. The Indian aviation sector stands at the cusp of a technological revolution. While the traditional legal framework provides a strong foundation, the advent of drones, UAM, and AI necessitates a nuanced and evolving regulatory approach.
For start-ups, aviation giants, and technology companies operating in this space, legal preparedness must be a part of their strategic planning. Whether you are a drone manufacturer, a logistics provider to the UAVs, or a company integrating AI into the air traffic control systems, ensuring compliance with evolving regulatory frameworks and proactively mitigating the liability risks will be crucial to operational success.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
