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 |
|
| Total Funding | Rs. 1,261 crore allocated by the Ministry of Agriculture and Farmers Welfare. |
| Financial Assistance |
|
| Training |
|
| Training Providers | Remote Pilot Training Organizations (RPTOs) approved by the Directorate General of Civil Aviation (DGCA). |
| Implementing Agency |
|
| Operational Limits | Drones must operate within visual line of sight (vLOS) and below 400 feet (120 meters) AGL. |
| Expected Outcomes |
|
PYQ:[2020] Consider the following activities:
At the present level of technology, which of the above activities can be successfully carried out by using drones? (a) 1 and 2 only |
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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
|
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)
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[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.
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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 |
|
| Objectives and Mission |
|
| Structure and Governance |
|
| Membership |
|
| Functions and Responsibilities |
|
| Key Areas of Focus |
|
| Significant Programs and Initiatives |
|
| Publications and Resources |
|
| Regional Offices | Seven offices in Bangkok, Cairo, Dakar, Lima, Mexico City, Nairobi, and Paris |
| Standards |
|
| Global Impact |
|
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. |
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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:
|
What is Integrated Goods and Services Tax (IGST)?
|
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)’?
Select the correct answer using the code given below: (a) 1 only |
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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.
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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.
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.
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.
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In news: DigiYatra Initiative Copy
Note4Students
From UPSC perspective, the following things are important :
Prelims level: DigiYatra
Mains level: Read the attached story
Central Idea
- DigiYatra gates, allowing passengers to use facial scans and barcoded e-tickets for terminal and security check entry, are installed at 13 airports, with 25 more set for deployment next year.
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.
Try this PYQ from CSP 2022:
Consider the following (2022)
- Aarogya Setu
- CoWIN
- Digi Locker
- 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.
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In news: DigiYatra Initiative
Note4Students
From UPSC perspective, the following things are important :
Prelims level: DigiYatra
Mains level: Read the attached story
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)
- Aarogya Setu
- CoWIN
- Digi Locker
- 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.
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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
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.
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India as Aviation Transit Hub
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Transit Hub
Mains level: Read the attached story
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.
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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
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.
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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
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
- 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.
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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
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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Private: International Civil Aviation Organisation
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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%.
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What caused the great Indian Airport jam?
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Airport traffic management
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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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
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.
- LEG is Primary Aviation Legislation and Specific Operating Regulations;
- ORG is Civil Aviation Organisation;
- PEL is Personnel Licensing and Training;
- OPS is Aircraft Operations;
- AIR is Airworthiness of Aircraft; and
- 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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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
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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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?
- India’s civil Aviation Sector is facing a unique crisis a crisis of credibility and safety.
- Some of the issues are-
- 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.
- A bird was found in the cockpit of an Air India Express cruising at 37 000 feet.
- One flight suffered an engine snag another noticed smoke in the cabin.
- 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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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.
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[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:
- Failure to set up airports or heliports due to lack of availability of land
- Airlines unable to start flights on routes awarded to them or finding the routes difficult to sustain
- 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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Import Ban on Drones
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Drones
Mains level: Ban on drone import
The Government has banned the import of drones barring for R&D, defense, and security purposes.
Why in news?
- To promote Make-in-India drones.
- Before this order, the import of drones was “restricted” and needed prior clearance of the Directorate General of Civil Aviation (DGCA) and an import license from DGFT.
India’s sources of Imports
- For its defense needs, India imports from Israel and the US.
- Consumer drones such as those used for wedding photography come from China and drones for light shows also come from China apart from Russia.
Why need drones?
- Indian drone manufacturers and service providers arrange drones for a variety of use cases such as survey and mapping, security and surveillance, inspection, construction progress monitoring, and drone delivery.
What does the order say?
- The Directorate General of Foreign Trade (DGFT) issued an order prohibiting with immediate effect the import of drones in Completely-Built-Up (CBU), Semi-knocked-down (SKD), or Completely-Knocked-down (CKD) forms.
- Import of drones by government entities, educational institutions recognized by the Central or State governments, government-recognized R&D entities, and drone manufacturers for R&D purposes as well as for defense and security purposes will be allowed.
- For this, there has to be an import authorization obtained from the DGFT.
- The import of drone components is “free”, implying that no permission is needed from the DGFT allowing local manufacturers to import parts like diodes, chips, motors, lithium-ion batteries, etc.
Steps taken to promote indigenous drone manufacturing
- In August last year, the Government brought out liberalized Drone Rules, 2021 which reduced the number of forms to be filled to seek authorization from 25 to five.
- They also dispensed with the need for security clearance before any registration or issuance of the license.
- R&D entities too have been provided blanket exemption from all kinds of permissions, and restrictions on foreign-owned companies registered in India have also been removed.
- The Government has also announced a production-linked incentive scheme for drones and drone components with the aim to make India a “global drone hub by 2030”.
- Foreign manufacturers will be encouraged to set up assembly lines in India.
Why such a blanket ban?
- Most drone manufacturers in India assemble imported components in India, and there is less manufacturing.
- The import ban will ensure that an Indian manufacturer has control of the IP, design, and software which gives him or her a total understanding and control of the product.
- Over a period of time, this can enable further indigenization.
Possible repercussions of the ban
- The ban is likely to hurt those who use drones for photography and videography for weddings and events.
- These drones primarily come from China because they are cheaper and easy to use and India still has a lot of catching up to do in manufacturing them.
Also read
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India improves position in Henley Passport Index, 2021
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Henley Passport Index
Mains level: Ease of foreign travel for Indians
India now ranks at 83rd position in the Henley Passport Index, climbing seven places from 90th rank last year.
Henley Passport Index
- The Henley & Partners publishes the ranking and the Index of the world’s passports according to the number of destinations their holders can access without a prior visa.
- It was launched in 2005.
- The ranking is based on data from the IATA (International Air Transport Association), a trade association of some 290 airlines, including all major carriers.
- The index includes 199 different passports and 227 different travel destinations.
- The data are updated in real time as and when visa policy changes come into effect.
India’s performance this year
- India is ranked at 83rd position and shares the rank with Sao Tome and Principe in Central Africa, behind Rwanda and Uganda.
- It now has visa-free access to 60 destinations worldwide with Oman and Armenia being the latest additions.
- It has added 35 more destinations since 2006.
Global performance
- Japan and Singapore has topped the list.
- The US and the UK passports regained some of their previous strength after falling all the way to eighth place in 2020.
- The passport of the Maldives is the most powerful in South Asia (58th) enabling visa-free entry to 88 countries.
- In South Asia, Bangladesh (103rd) is ahead of Pakistan (108th) and Nepal (105th).
- Afghanistan undoubtedly stands at the last rank.
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UDAN scheme
Note4Students
From UPSC perspective, the following things are important :
Prelims level: UDAN Scheme
Mains level: Aviation infrastructure in India
PM launched the UDAN scheme nearly five years back with the aim to take flying to the masses. However, many routes have launched by airlines have been discontinued.
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.
Present status of working
- A total of nine rounds of bidding have taken place since January 2017.
- The Ministry of Civil Aviation has set a target of operationalizing as many as 100 unserved and underserved airports and starting at least 1,000 RCS routes by 2024.
- So far, the Airports Authority of India (AAI) has awarded 948 routes under UDAN, of which 403 routes have taken off that connect 65 airports.
- Out of the total 28 seaplane routes connecting 14 water aerodromes, only two have commenced.
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:
- Failure to set up airports or heliports due to lack of availability of land
- Airlines unable to start flights on routes awarded to them or finding the routes difficult to sustain
- 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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What is Freedom of Air?
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Freedom of Air
Mains level: Not Much
A flight from Srinagar to Sharjah had to avoid flying over Pakistan after the country denied permission to use its airspace for the said flight. With this refusal, Pakistan has violated the first freedom of air.
Freedom of Air
- Following the Chicago Convention in 1944, the signatories decided to set rules that would act as fundamental building blocks to international commercial aviation.
- As a part of these rules, initially, six ‘freedoms of air’ were decided.
- These freedoms or rights still operate within the ambit of multilateral and bilateral treaties.
- It allows to grant airlines of a particular country the privilege to use and/or land in another country’s airspace.
‘Freedoms’ accorded
- Flying over a foreign country without landing
- Refuel or carry out maintenance in a foreign country without embarking or disembarking passengers or cargo
- Fly from the home country and land in a foreign country
- Fly from a foreign country and land in the home country
- Fly from the home country to a foreign country, stopping in another foreign country on the way
- Fly from a foreign country to another foreign country, stopping in the home country on the way
- Fly from a foreign country to another foreign country, without stopping in the home country
- Fly from the home country to a foreign country, then on to another destination within the same foreign country
- Fly internally within a foreign country
Why did Pakistan deny use of its airspace?
- There has been no official explanation given by Pakistan authorities.
- Indian has approached Pakistan to raise the issue of the refusal to use its airspace for the said flight.
- Notably, other Indian airlines flying to west Asia from airports such as Delhi, Lucknow, etc have not been barred from using Pakistan airspace.
- This also raises the concern of Pakistan violating the first freedom of air.
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Liberalized Drone Rules, 2021
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Draft Drone Rules, 2021
The central government has notified the Drone Rules 2021, a much more liberalised regime for unmanned aircraft systems than what existed previously.
Key features of Drone Rules 2021
These rules are built on a premise of trust, self-certification and non-intrusive monitoring. The policy is designed to usher in an era of super-normal growth while balancing safety and security considerations.
- Several approvals abolished: Unique authorisation number, unique prototype identification number, certificate of manufacturing and airworthiness, certificate of conformance, certificate of maintenance, import clearance, acceptance of existing drones, operator permit, authorisation of R&D organisation, student remote pilot licence, remote pilot instructor authorisation, drone port authorisation etc.
- Number of forms reduced: from 25 to 5.
- Types of fees: reduced from 72 to 4.
- Quantum of fee: reduced to nominal levels and delinked with size of drone. For instance, the fee for a remote pilot license fee has been reduced from INR 3000 (for large drone) to INR 100 for all categories of drones; and is valid for 10 years.
- Digital sky platform: It shall be developed as a user-friendly single-window system. There will be minimal human interface and most permissions will be self-generated.
- Interactive airspace map: with green, yellow and red zones shall be displayed on the digital sky platform within 30 days of publication of these rules.
- No permission required in green zones: Green zone means the airspace upto a vertical distance of 400 feet or 120 metre that has not been designated as a red zone or yellow zone in the airspace map; and the airspace upto a vertical distance of 200 feet or 60 metre above the area located between a lateral distance of 8 and 12 kilometre from the perimeter of an operational airport.
- De-licensing: No remote pilot licence required for micro drones (for non-commercial use) and nano drones. No requirement for security clearance before issuance of any registration or licence. Nano and model drones (made for research or recreation purposes) are exempt from type certification.
- Foreign ownership: No restriction on foreign ownership in Indian drone companies.
- Import: Import of drones to be regulated by DGFT. Requirement of import clearance from DGCA abolished.
- Size of drones: Coverage of drones under Drone Rules, 2021 increased from 300 kg to 500 kg. This will cover drone taxis also.
- Testing of drones: for issuance of Type Certificate to be carried out by Quality Council of India or authorised testing entities.
- UID: Manufacturers and importers may generate their drones’ unique identification number on the digital sky platform through the self-certification route. Drones present in India on or before 30 Nov 2021 will be issued a unique identification number through the digital sky platform provided, they have a DAN, a GST-paid invoice and are part of the list of DGCA-approved drones.
- Penalties: Maximum penalty for violations reduced to INR 1 lakh.
- Permission: Safety and security features like ‘No permission – no takeoff’ (NPNT), real-time tracking beacon, geo-fencing etc. to be notified in future. A six-month lead time will be provided to the industry for compliance.
- Drone corridors: will be developed for cargo deliveries.
- Drone promotion council: to be set up by Government with participation from academia, startups and other stakeholders to facilitate a growth-oriented regulatory regime.
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AERA Bill, 2021
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: AERA Act
In the recent monsoon session, Parliament passed the Airports Economic Regulatory Authority of India (Amendment) Bill, 2021.
Key features of the AERA Bill, 2021
- It seeks to amend the Airports Economic Regulatory Authority of India Act, 2008.
- The 2008 Act established the Airport Economic Regulatory Authority (AERA).
- AERA regulates tariffs and other charges (such as airport development fees) for aeronautical services rendered at major airports in India.
- The 2008 Act designates an airport as a major airport if it has an annual passenger traffic of at least 35 lakh.
- The central government may also designate any airport as a major airport by a notification.
- The Bill adds that the central government may group airports and notify the group as a major airport.
Why has the definition of a major airport been amended?
- The Amendment has changed the definition of a major airport to include “a group of airports” after the words “any other airport”.
- The government hopes the move will encourage the development of smaller airports and make bidding for airports with less passenger traffic attractive.
- It plans to club profitable airports with non-profitable ones and offer them as a package for development in public-private partnership mode to expand connectivity.
Was there a need to amend the AERA Act?
- The Airports Authority of India (AAI) awarded six airports — Lucknow, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram and Guwahati — for operations, management and development in public-private partnership mode in February 2019.
- In 2020 too, the AAI has approved leasing of another six airports — Bhubaneswar, Varanasi, Amritsar, Raipur, Indore and Tiruchi.
- The Ministry of Civil Aviation plans to club each of these airports with nearby smaller airports for joint development.
- The move follows FM’s Budget Speech this year, in which she said the government planned to monetize airports in tier-2 and tier-3 cities.
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Draft Drone Rules, 2021
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Draft Drone Rules, 2021
The Ministry of Civil Aviation has released Draft Drone Rules, 2021, for public consultation. The rules will replace the Unmanned Aircraft System Rules, 2021.
Highlights of the Draft Drone Rules 2021
Number of forms: The rules propose to reduce the number of forms required for manufacturing, importing, testing, certifying and operating drones in India from 25 to six.
Abolishing authorization number: The draft seeks to abolish the unique authorisation number, unique prototype identification number, and certificate of conformance that were previously required for approval of drone flights.
Digital Sky Platform: Digital Sky, a platform launched by the government in December 2018, will become a single-window system for all approvals under the newly proposed rules.
Airspace map: An airspace map segregating the entire landmass of India into Green, Yellow and Red zones will be published on the platform within 30 days of notification of the new rules, the government said. The map will also be machine-readable through an Application Programming Interface (API) for easier plotting of drone flight paths.
Airport Perimeter: The draft rules reduced the airport perimeter from 45 km to 12 km. The rules state that no flight permissions would be required to fly up to 400 feet in green zones and up to 200 feet in the area between 8 and 12 km from the airport perimeter.
Drone corridors: The government will also publish a policy framework for Unmanned Aircraft System Traffic Management (UTM) within 60 days of notifying the rules. This will also include frameworks for developing “drone corridors” for the safe transfer of goods by drones.
Drone Promotion Council: The Rules also propose the setting up of a Drone Promotion Council, with the aim of facilitating a business-friendly regulatory regime for drones in India, the establishment of incubators for developing drone technologies and organizing competitive events to showcase drones and counter-drone solutions.
Others: To implement safety features such as “no permission, no take-off”, real-time tracking and geofencing, drone manufacturers, importers and operators will get six months’ time to comply from the date of notification of the rules.
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What is Chicago Convention of 1944?
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Chicago Convention of 1944
Mains level: NA
A private commercial flight was forced to make an emergency landing in Minsk by a MiG-29 fighter jet of Belarus. The incident received considerable global attention.
How justified was Belarus in taking such a decision?
- The answer lies at the junction of Belarus’s domestic laws as a sovereign country and international laws governing the action that states can legitimately take to deal with threats to security, real or perceived.
- The issue of the use of military aircraft to neutralize potential threats posed by civilian aircraft acquired a different kind of urgency in the aftermath of terrorist attacks in the US on September 11, 2001.
- Generally speaking, international law grants sovereignty to nations over their airspace as it does in territorial waters.
The Chicago Convention of 1944
- The Convention on International Civil Aviation, better known as the Chicago Convention of 1944, to which Belarus is a signatory state, prohibits any unlawful intervention against a civilian aircraft.
- At the same time, it has various provisions under Article 9 which permit a sovereign state the right to impose restrictions.
- This includes enforced landings at a designated airport in its territory, in “exceptional circumstances or during a period of emergency, or in the interest of public safety”.
- Once a flight has landed, Article 16 provides the host country the right to board/search the aircraft.
- This is probably the clause that provided cover for the local authorities to board Mr. Morales’s aircraft in Austria in 2013.
- But the Chicago Convention applies only to civilian aircraft of the contracting parties.
Other such laws
- International law might also have to be examined in light of the International Air Services Transit Agreement (IASTA), also concluded in Chicago in 1944.
- According to this agreement, contracting states grant to one another the freedom of air transit in respect of scheduled international air services, that is, the privilege to fly across territories without landing.
- Belarus is not a signatory of IASTA.
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[pib] Drone use permission for feasibility study of Covid-19 vaccine delivery
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Drone use for covid vaccine delivery
Conditional drone use exemption for vaccine delivery
- Ministry of Civil Aviation (MoCA) and Directorate General of Civil Aviation (DGCA) have granted conditional exemption to the Indian Council of Medical Research (ICMR).
- The exemption is granted for conducting feasibility study of Covid-19 vaccine delivery using drones in collaboration with IIT Kanpur.
- The permission exemption is valid for a period of one year or until further orders.
Entities using drone on conditional drone use exemption basis
- Conditional drone use exemption has been granted to the below entities for said purposes:
- Nagar Nigam of Dehradun, Haldwani, Haridwar & Rudrapur for preparation of GIS based property database & electronic tax register.
- West Central Railway, (WCR) Kota for train accident site & maintaining safety & security of the railway assets.
- West Central Railway, (WCR) Katni for train accident site & maintaining safety & security of the railway assets.
- Vedanta Ltd. (Cairn Oil & Gas) also received the conditional drone usage exemption for data acquisition for asset inspecting & mapping.
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India’s First Seaplane Project
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Seaplanes
Mains level: Seaplane connectivity in India
The first of the five seaplane services in Gujarat, connecting Sabarmati River in Ahmedabad to the Statue of Unity in Kevadia in Narmada district, will be inaugurated on October 31
India’s first seaplane
- A seaplane is a fixed-winged aeroplane designed for taking off and landing on water. It offers the public the speed of an aeroplane with the utility of a boat.
- The first seaplane project of the country is part of a directive of the Union Ministry of Civil Aviation.
- As per the directive, the Airports Authority of India (AAI) requested state governments of Gujarat, Assam, Andhra Pradesh and Telangana and the administration of Andaman & Nicobar to propose potential locations for setting up water aerodromes to boost the tourism sector.
Where will the seaplane connect?
- In Kevadia, the proposed Terminal will be spread over 0.51 acres in the premises of the Sardar Sarovar Narmada Nigam Ltd., located in the Panchmuli lake (Dyke 3) of the Sardar Sarovar Dam at Limdi village.
- It is approximately 90 km from Vadodara, 150 km from Surat and 200 km from Ahmedabad — with an aerial distance of 74.6km from Vadodara airport.
What impact will it have on the environment?
- The water aerodrome is not a listed project/activity in the Schedule to the Environmental Impact Assessment Notification, 2006 and its amendments.
- However, the activities proposed under the water aerodrome project may have a similar type of impact as that of an airport.
- There has to be a bathymetric and hydrographic survey by Inland Waterways Authority of India (IWAI).
- During seaplane operations, there will be turbulence created in the water while takeoff and landing of seaplanes. This will lead to more operation process i.e. mixing of oxygen in the water.
- This will have a positive impact on the aquatic ecosystem near seaplane operations increasing oxygen content and decreasing carbon content in this system.
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Ensuring the take off of aviation industry
Note4Students
From UPSC perspective, the following things are important :
Prelims level: IATA
Mains level: Paper 3- Impact of corona pandemic on aviation industry.
Primarily the major driver of connectivity, the aviation industry is one of the worst affected industries in the corona crisis. It is in the need of relief package from the government. The article discusses the contribution of the industry in the economy. Finer details of the operation of the industry are also explained. In the end, details of the measures expected from the government relief package are discussed.
Significance of aviation industry in Indian economy
- The air transport industry, including airlines and its supply chain, is estimated to contribute directly or indirectly $72 billion of GDP to India.
- India being the fastest-growing domestic market in the world at 18.6 per cent per annum, followed by China at 11.6 per cent. (IATA report)
Impact of Covid-19 crisis
- The same IATA report says that in India, 29.32 lakh jobs in the aviation sector are at risk.
- Airlines in the Asia Pacific region may see the largest revenue drop.
- The air transport business along with its supply chain may see a near wipeout of approximately 40 per cent of business volume in the current financial year.
- The two-month-long shutdown has eroded the capital of most airlines.
- The cost of maintaining Aircraft on Ground (AoG) is extremely high, and with nil revenues, this is a sure-shot recipe for disaster.
Economics of running airlines profitably
- You should be flying your entire fleet, with no Aircraft on Ground. (Airbus A-320 or similar)
- Every plane must fly for 11 hours a day.
- Which will be possible only if you have a turnaround time of 30-45 minutes.
- And you have an average Passenger Load Factor (PLF) of around 65 to 67 per cent.
Now, consider this:
- Forty per cent of your fleet is grounded.
- Due to social distancing and other hygiene protocols, an aircraft can fly only eight hours because of the elongated turnaround time.
- One-third seats are to be kept vacant.
- And finally, you are flying with a reduced 50 per cent PLF.
- The break-even ticket price in such a scenario would be astronomical.
Demand for financial relief package
- The Asia Pacific division of the IATA has corresponded with the Indian government, citing the case of some of the other nations which have announced financial relief packages for the sector.
- As per reports, countries like Australia, New Zealand and Singapore, have announced relief packages for airlines.
- FICCI has urged the government to immediately provide direct cash support to Indian carriers whereby the airlines can meet their fixed costs.
What relief measures could be provided?
- First, a moratorium for the next 12 months on all interest on the principal amount of loans without limitations of size or turnover through a direction to all financial institutions.
- Second, VAT on ATF by state governments, which ranges from 0-30 per cent, should be rationalised with immediate effect to a maximum of 4 per cent across all states for the next six months.
- Third, aviation turbine fuel needs to be brought under the ambit of 12 per cent GST, with full input tax credit on all goods and services.
- Fourth, a waiver for private airport operators space rentals and AAI, royalty, landing, parking, route navigation and route terminal changes for the next one year.
- This should be done not only for the airlines but all aviation-related businesses.
- Fifth, all airlines and aviation-related business must be treated as priority sector lending.
- Sixth, no loans to airlines and other aviation-related business should be classified as NPAs and no collateral enforced or enhanced during this moratorium.
- Finally, support the airlines and other-aviation related companies by paying or taking care of salaries of the employees for a period of six months.
- This will allow employee retention and is being done in a lot of countries.
A question was asked by the UPSC in 2017 related to the development of Airports in India under PPP model. This shows the importance of the aviation sector from UPSC point of view. Consider the question asked by the UPSC “Examine the development of Airports in India through joint ventures under PPP model. What are the challenges faced by the authorities in this regard?”
Conclusion
Recovery from this crisis is going to be a long and uphill task. It will take effort, planning and, most importantly, coordination between the aviation industry and the government.
Back2Basic: IATA-International Air Transport Association
- IATA was founded in Havana, Cuba, on 19 April 1945.
- It is the prime vehicle for inter-airline cooperation in promoting safe, reliable, secure and economical air services – for the benefit of the world’s consumers.
- The international scheduled air transport industry is more than 100 times larger than it was in 1945.
- Few industries can match the dynamism of that growth, which would have been much less spectacular without the standards, practices and procedures developed within IATA.
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Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.
GARUD portal for fast-track approval to COVID-19 related drone operations
Note4Students
From UPSC perspective, the following things are important :
Prelims level: GARUD Portal
Mains level: Not Much
Civil Aviation Ministry and DGCA have launched the GARUD (portal for providing fast track conditional exemptions to government agencies for COVID-19 related drone operations.
Possible prelim question:
The Garud Portal which sometimes finds mention in the news is related to-
a) Air travel of defence personnel
b) Airlifting of the stranded Indian citizens
c) Registration of Remotely-piloted aircraft system (RPAS)
d) None of these
GARUD portal
- GARUD is an acronym for ‘Government Authorisation for Relief Using Drones’.
- The objective of the portal is to assist governmental entities in seeking exemption for COVID-19 related Remotely-piloted aircraft system (RPAS) operations.
- The Civil Aviation Ministry has clarified that any violation of provisions will make the conditional exemption null and void and will lead to penal action.
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Drone Census
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Drone Census, Drone Categorization
Mains level: Regulation of drones in India
India’s first drone census has seen only 2,500 Ownership Acknowledgment Numbers (OANs) being issued by the Ministry of Civil Aviation (MoCA) since five days of beginning.
Drone Census
- The MoCA had issued a notice providing a one-time opportunity for voluntary disclosure of all drones and operators starting from January 14.
- The DGCA issued the Civil Aviation Requirements (CAR), Section 3 – Air Transport Series X, Part I, Issue I, dated August 27, 2018 regulates use of drones.
- It provides the process for obtaining Unique Identification Number, Unmanned Aircraft Operator Permit (UAOP) and other operational requirements; there are drones that do not comply with the CAR.
- If a drone is not enlisted by 5 p.m. on January 31, then it will most definitely be confiscated.
- After January 31, only authorised retailers will be allowed to sell them after uploading buyers’ Know your Customer (KYC) and sale invoice, similar to the sale of mobile phones and cars.
Why such move?
- The exercise will give the government a picture of who owns what kind of drone in which part of the country.
- It will help in making policy decisions that should ideally become the base for understanding the scale of operations.
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