Indian aviation is now maturing and becoming larger in size. In order to provide it with an institutional framework, a committee was formed to produce a roadmap for the civil aviation sector. This committee headed by Naresh Chandra, former Cabinet secretary, gave its report on

November 30, 2003. It provided for an institutional framework for growth and suggested continued institutional intervention in the following areas: (i) safety regulation, (ii) limited economic regulation, (iii) essential but uneconomic air services, (iv) management of bilaterals and (v) aviation security. The report was accepted by the government. So far, the Airport Economic Regulatory Authority (AERA) has been established to oversee the airports and look into various airport charges, including navigation charges.

On the issue of safety, the committee looked into the deficiencies of the office of Directorate General of Civil Aviation (DGCA). It suggested that there should be a specialised regulator overseeing safety issues, separate from the economic regulator. It further stated that DGCA remains well-suited for this function, however, it fell short of recommending a proper framework for DGCA, which will not only give it the independence but also the financial ability to overcome the security deficiencies that are making the Indian safety a nightmarish issue.

The Directors General of Civil Aviation Conference called by the International Civil Aviation Organisation (ICAO) on a global strategy for aviation safety, held in Montreal in March 2006, called upon States to establish, where necessary and as soon as possible, an autonomous Civil Aviation Authority that is empowered and adequately funded to provide effective safety oversight. It was further felt that the absence of an autonomous Civil Aviation Authority in certain States was a serious obstacle to implementing safety oversight.

While many States like Australia, the UK and Canada already have autonomous civil aviation organisations with independent financial base, many States in the developing world, with the support of financial institutions and donors, are at various stages in the planning and implementation of institutional reforms aimed at creating an autonomous Civil Aviation Authority empowered to regulate both technical and economic aspects of the civil aviation industry. In India, the DGCA is a subordinate office of the Ministry of Civil Aviation both administratively and from the financial angle.

ICAO conducts safety audits of all its member countries. The US also conducts safety audit for countries that want their aircraft to land in the US. In both these cases, India?s record was dismal and the US Federal Aviation Authority (FAA) had even threatened to downgrade India?s categorisation from category I to category II on account of poor safety oversight. It was with great persuasion and intervention of the ministry of civil aviation and DGCA that the situation was saved and FAA agreed not to downgrade. However, a very large number of posts need to be created and filled up. Special financial sanctions were sought and given at the PM?s level for this purpose to get out of this embarrassment. But the issue that continues to bother is that as the aviation sector in India is still a growing business, there is a need for continuous upgradation of the safety oversight mechanism, including creation of posts under DGCA.

Under the existing regime, all charges and fees levied by DGCA on aerodromes, various fees for licences, examination, etc, go into the Consolidated Fund of India and it becomes extremely difficult for DGCA to create safety-related posts commensurate with the growth in air traffic. Once DGCA is converted into an autonomous authority it will have the finances as well as the power to create posts as and when necessary. The authority will have its own funds and a board to manage it on the lines of the existing Airports Authority of India.

In view of the systemic fault in the government machinery ?that prevents natural creation of posts along with growth of the industry?the only way out is to convert the existing DGCA into an authority by a legislative process so that DGCA becomes financially and administratively independent, and retains the revenues that come by way of various fees and charges.

It may, however, be pointed out that accident investigation, which today falls within the mandate of DGCA, should be taken out of DGCA and may be made into an independent authority on the lines of the US National Transport Safety Board. The Indian Railways already have a commission on railway safety that investigates all railway accidents. Interestingly, it does not come under the administrative jurisdiction of the Railway Board but under the ministry of civil aviation. The ministry of civil aviation, on the other hand, does not have any such arrangement. It is required that we set up an integrated, comprehensive Accident Investigation Board, which could perhaps cover a range of air, railways, road and water transport accidents.

The author is chairman of International Foundation for Aviation and Aerospace Development. He was earlier India?s Representative to ICAO sanat_kaul@hotmail.com