ABSTRACT –
The Indian Aviation Industry has experienced rapid growth in recent years, driven by increasing demand for air travel and cargo services. However, this growth has also highlighted the need for a comprehensive and effective regulatory framework to govern the industry. This paper provides an in-depth analysis of Indian aviation law, tracing its evolution from the Indian Aircraft Act, 1934 to the present day bill passed by the Parliament named as The Bhartiya Vayuyan Vidheyak Bill, 2024. The new bill aims to simplify aviation regulations. It examines various aviation laws such as The Airports Authority of India Act, 1994, and the Civil Aviation Requirements (CARs) issued by the Directorate General of Civil Aviation (DGCA). It also discusses the challenges facing the Indian aviation industry, including issues related to safety, security and environmental sustainability. In addition to legal protection, the digital safety of aviation is also to be taken into the framework. The Indian aviation sector has shown tremendous graphical growth towards development. Furthermore, it explores the dispute resolution mechanisms available in Indian aviation law, including arbitration and litigation. The paper concludes by highlighting the need for ongoing reform and modernization of Indian aviation law to ensure that it remains effective and responsive to the needs of the industry.
KEYWORDS –
Indian aviation law, regulatory framework, Airports Authority of India Act, Civil Aviation Requirements, safety, dispute resolution, security, environmental sustainability.
INTRODUCTION –
India’s aviation law includes acts, rules and regulations that govern airports, traffic and air traffic. It is a complex and constantly evolving field that governs the
operation and regulation of aircraft and airports. The historical background of aviation law can be traced back to the early days of flight when the first airplanes were developed in the late 19th and early 20th centuries. Over the decade it has been witnessed that the Indian Aviation Industry has shown tremendous growth in terms of every need. India’s aviation sector is experiencing a skyrocketing success, fuelled by surging demand and the government’s unwavering commitment to its growth
through supportive policies. The industry has gone through a remarkable
transformation, abandoning its previous limitations and evolving into a vibrant and competitive sector. This innovative shift has accelerated India to the forefront of the global aviation ecosystem, becoming the third-largest domestic aviation market globally, after the USA and China.
The administrative vow to nurturing this sector has been instrumental in this whole success tale. A Series of strategic initiatives have been formulated, each structured to empower the industry and release its full potential. The Prime Minister has highlighted India’s technological and infrastructure achievements in civil aviation and reiterates the significance of making the sector more equitable for women. The sector also has gone from serving a small, privileged section of society to being more widespread and economical, benefiting the wide-ranging population specially from Tier-2 and Tier-3 cities.
India’s aviation industry has accomplished the progress of the number of operational airports which has doubled in the country from 74 in 2015 to 157 in 2025. The country has also aimed to increase these figures to around 400 by 2047 – a target set by our developing country INDIA.
Legacy of The Aircraft Act, 1934 –
In an era where safety and security reign at supreme level, the Indian government is taking courageous moves to verify that aviation remains a safe and productive mode of transport. Highlighting concerns raised by members of the government body and public regarding mounting airfares, the government assured that this sector is actively working to improve accessibility and safety for passengers. The new legislation which has been introduced currently after aimed at replacing over a century-old act named as The Bhartiya Vayuyan Vidheyak Bill, 2024, a landmark bill which acquired a rumbling support in the Rajya Sabha following its earlier approval in the Lok Sabha, indicates a substantial advancement towards enhancing the ease of doing business. With the aviation sector primed for explosive growth, this bill is not just merely a regulatory or timely update; rather it is a bold and vibrant
declaration of our country’s commitment towards modernizing its aviation
landscape.
Essential elements of the Bhartiya Vayuyan Vidheyak Bill, 2024 –
1. Aircraft Act 1934 – The new Bill preserves the provisions from the Aircraft Act, 1934, which established the Directorate General of Civil Aviation (DGCA) and Bureau of Civil Aviation Security (BCAS). These autonomous bodies will continue to oversee safety, security and investigations related to accidents.
2. Regulation of Aircraft Design – The Bill authorises the DGCA to regulate not only the manufacture, repair, and maintenance of aircraft but also the design
and locations where they are being designed. With these new rules, the DGCA can ensure more comprehensive and responsible stewardship of the aviation sector in India.
3. Arbitrator appointment – The bill allows the Central government to arbitrarily appoint an arbitrator to resolve compensation disputes related to land acquisition near airports.
4. Single Window Clearance – The BVV Bill, 2024, moves the accountability for managing Radio Telephone Operator Restricted (RTR) certifications from the Department of Telecom (DoT) to the DGCA. This shift aims to streamline the licensing procedure for aviation personnel and address corruption in the Department of Telecom’s RTR exams, ensuring high transparency under the DGCA’s oversight. These certifications render a license certifying a person’s qualification to use radio communication equipment on an aircraft, majorly for controlling noise pollution. It is compulsory for the pilots in India.
1
Aviation Policy : Balancing Growth with Safety and Security –
As the world of aviation undergoes significant shifts, India’s airline Industry reaches a critical juncture, full with opportunities yet with so many setbacks. If these hurdles are handled with great precaution then it will result in a more vigorous and
competitive industry.
1. Logistic Hurdles –
India’s airline industry has been facing a huge pilot shortage for many years, majorly facing the issue of the lack of trained pilots. The shortage of this issue has been witnessed from the last 5-6 years due to this global health crisis. There is a need for better staff planning and public sector intervention to increase the training of more pilots as much as possible. A further
challenge is the burden of airport taxes and charges on air passengers. As this market is extremely cost-sensitive, struggles of passengers with this exposing rates become a burden for them. This scenario greatly affects demand and limits growth, specifically in the regions where strategic pricing is essential.
2. Budgetary Constraints –
The most recent Union Budget passed by the Finance Minister is a notable one for the aviation sector as it aims to introduce sustainable aviation fuel in India. The innovation and integration of this initiative could help to achieve
net-zero targets to reproduce 8-10 million tonnes of this kind of fuel by 2040. In addition to this, one more challenge that this sector has been facing since Covid Pandemic is that without the support of the government, the airlines would not be able to meet up their finances. Many airlines have been affected such as Kingfisher Airlines, Jet Airways and Go Airlines, etc.
3. Administrative Burdens –
Multiple regulatory authorities govern India’s aviation industry comprising the BCA and the DGCA which creates overlapping roles and responsibilities. So, it has been suggested that by consolidating regulatory powers into one entity to steward all legislative aspects could enhance productivity, improve
answerability and ensure consistent enforcement of rules and regulations in the industry.
4. Infrastructure Deficiencies –
Several schemes have been introduced by the government to address the challenges related to this sector such as the UDAN (Ude Desh Ka Aam Nagrik) scheme , Regional Connectivity Scheme which is soaring towards inclusivity in Indian Aviation. These initiatives help to connect those remote cities together which lack in the road infrastructure to build an airport there. These schemes also make air travel affordable, accessible and cheap in terms of money and also focuses on its efficiency.
RESEARCH METHODOLOGY –
This analysis will deploy a hybrid approach which includes both quantitative and qualitative methods. Descriptive and inferential statistics have been used for secondary data collection. Sources such as the IBEF, Indian airports analysis , DGCA and the International Civil Aviation Organization , academic journals and airline industry reports.
REVIEW OF LITERATURE –
Contemporary Issues in Aviation Regulation –
1. Sustainable Aviation Fuels (SAF) – Research has explored the capacity for this type of aviation fuel to reduce the greenhouse gas emissions in
upcoming years in our Indian Aviation Industry and enhance its sustainability.
(Eduardo Cabrerra, University of Lisbon, March 2022)
2. Liberalization and Privatization – Focusing on increasing privatization in this field by increasing the training institutes for pilots, for staff proved very beneficial. (Mohan Phuyal, December 2023)
3. Infrastructure Development – Studies have highlighted the need for facilities and equipment to support the advancement of the aviation industry. (Ministry
of Civil Aviation . 15 Sep. 2023)
4. Safety and Security – Research by various resources have identified the concerns as major issues in Indian aviation law. (CAPS India)
KEY CONCERNS OF AIR TRAVELLERS IN INDIA –
A suo- moto case has been filed in November 2023, regarding the complexities faced by the person with disabilities while travelling and raised questions on the provisions of The Right to disabilities act, 2016 which talks about the rights and dignities of persons with disabilities are protected. These issues faced by the persons with disabilities travelling by air arise due to the non-compliance of airlines with the poor implementation of requirements and accessibility. In contrast many cases have been recently highlighted on this similar issue like Jeeja Ghose & Anr. vs. Union of India & Ors. where the Supreme Court Of India held that the Spice jET had violated the Aircraft Rules, 1937 by denying the petitioner carriage on the basis of her disability.
Persons with disabilities have experienced exclusion and denial of their rights because these air travel facilities have not been created to fulfil their needs.
Secondly, the airline faces a lot of technical issues which lead to the grounding of more than 70 aircrafts at the end of the financial year. To lessen the severity, Indigo is extending its leases and procuring additional aircraft. Now, due to these hurdles, the sector aims to launch one aircraft per week. It must resolve so many operational mechanics such as high aviation turbine fuel prices of aeroplanes and the ongoing impact of the grounded aircraft.
Moreover, the airline also faces significant liabilities, owing more than 11,000 crore to banks and lessors. This also results in many complex legal proceedings with government groups including NCLT National Company Law Tribunal and in the Delhi High Court. In the later months, the sector got the support from investors to protect them from high debt such as the investment from the airline’s promoter, Ajay Singh who has invested a huge amount of valuation of Rs. 500 crore. Then in 2023 in December, a loan of Rs. 2250 crore was recovered with the help of 64 entities which stood as a support in reshaping the Indian Aviation Sector.
SUGGESTIONS –
Measures for enhancing aviation efficiency –
The Civil Aviation industry has evolved as the fastest growing industry in the country during the last few years and it has been observed that it has substantially recovered from pandemic as well in terms of logistics, financially in an efficient manner. It has been classified into scheduled air transport service including domestic and
international airlines, then non- scheduled air transport service consisting of charter
and taxi operators, air cargo services and all.
According to the report of International Air Transport Association (IATA), India is projected to overtake other top countries such as China and US in terms of air passengers by 2030. Despite healthy passenger air traffic growth, the revival in the earnings of this industry will be steady due to high fixed costs. To handle the surge in air traffic, the Indian Government has been putting efforts towards increasing the number of airports in the country. The figure has been increased up to 148
operational airports and in this current fiscal year, it has been envisioned to increase it to 220. There is a short-term solution which has been introduced by the state and the central government for the productivity of aviation fuel is that they consider to reduce the excise duty and VAT on ATF in a respective manner. Lower tax
implementation on ATF will help to increase the number of passengers travelling which results in growth in wealth and revenue and boost the socio-economic power of the state. MRO capabilities defined as Maintenance,Repair and Overhaul
capabilities have been introduced to ensure aircraft safety and reliability. This feature also helps to create more jobs and opportunities in this field and boost up the employment sector at each level in the whole country. To enjoy its provisions, the government can take several initiatives like they can put zero percent custom duty on these critical components. Assuring approval on Goods and service tax in every way for Indian airline customers can also support the MRO sector.
So, all these initiatives hence proved that India’s aviation sector is on a trajectory of remarkable achievement, positioning itself as a great contributor in the economy of the country. In terms of passenger traffic growth, India is expected to grow at a rate of 9% CAGR in the upcoming next seven years. As the middle class is expanding its arena, travel becomes more cheap and affordable, soaring the demand of both domestic and international flights. India is extensively growing its airport
infrastructure which will cater to the increasing demand in air travel and providing greater opportunities for airlines and job seekers.
CONCLUSION –
India’s aviation sector has perceived unprecedented growth over the past 10 years, driven by factors such as rising demand, liberalization of policies, and investments in infrastructure. The sector has emerged as a significant contributor to the country’s GDP and employment generation. However, despite the growth, the sector faces significant challenges, including infrastructure constraints, regulatory hurdles and environmental concerns. To perpetuate the growth momentum, it is essential for the government, airlines, and other stakeholders to work collaboratively to address these challenges. By addressing the barriers and leveraging opportunities, India’s aviation sector can continue to grow and emerge as a global leader in the industry. Several new airlines from Kerala and Lucknow are anticipated to begin operations, boosting facilities and a vibrant competition sector. While this year holds much hope,
challenges remain that require the government’s prompt attention if the ambitious goals of Indian aviation are to be attained.