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sri_bom Member
Joined: 22 Dec 2006 Posts: 2365 Location: Singapore
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Posted: Mon Jun 27, 2011 12:22 pm Post subject: DGCA to be renamed CAA |
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India's Government reportedly plans to make changes to the Directorate General of Civil Aviation, giving the new body powers to regulate airfares and appoint ombudsmen to address consumer grievances (Economic Times, 27-Jun-2011). The new DGCA, which will be renamed the Civil Aviation Authority (CAA), would have an appellate tribunal to hear appeals against its decisions. The draft bill has also recommended the establishment of a separate body to look into aviation accidents. |
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The_Goat Member
Joined: 03 Mar 2007 Posts: 3260 Location: South of France
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Posted: Mon Jun 27, 2011 12:59 pm Post subject: |
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The UK's Civil Aviation regulator is also called CAA.
Our chaps had to copy even this _________________ I don't know which is the more pampered bunch : AI's widebodies (the aunties) or Jet's widebodies (the planes).
-Jasepl |
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Nimish Member
Joined: 16 Dec 2006 Posts: 9757 Location: Bangalore, India
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Posted: Mon Jun 27, 2011 1:47 pm Post subject: |
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More details at: http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/dgca-likely-to-get-a-complete-makeover-and-regulate-airfares-and-appoint-ombudsmen-to-be-renamed-caa/articleshow/9007026.cm
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DGCA likely to get a complete makeover and regulate airfares and appoint ombudsmen, to be renamed CAA
The government plans a complete makeover of aviation regulator Directorate General of Civil Aviation, giving the new body powers to regulate airfares and appoint ombudsmen to address consumer grievances.
The revamped DGCA, which is going to be called Civil Aviation Authority (CAA), would have an appellate tribunal, which will hear appeals against its decisions.
The process to give more powers to the DGCA was expedited after the Mangalore plane crash last year, which killed 158 people. In October 2009, the International Civil Aviation Organisation was appointed to carry out a feasibility study for the CAA.
The draft bill has also recommended setting up of a separate body to look into aviation accidents, so that the investigative and regulatory functions of the regulator do not clash. At present, the DGCA does safety audits, grants licences and investigates plane crashes.
These recommendations are a part of a draft bill seeking to empower the DGCA and to alleviate the concerns of air travellers who often face sudden spikes in fares and don't have access to a quick grievance redressal system.
The council will be on the lines of the Air Transport Users Council in the UK.
"The DGCA, at present, is only a safety regulatory authority. As the sector is growing rapidly, we want the regulator to have more teeth to address passenger grievances and pull up erring airlines, which it can't do now," a senior civil aviation ministry official said.
Experts say India's rapidly expanding aviation sector would need 1,500 aircraft over the next two decades. Last year, Indian airlines flew about 60 million passengers, which is expected to grow to 362 million by 2021.
"As the sector grows, increased regulation is needed to protect passenger interests, expedite implementation of policies and resolve issues among stakeholders quickly," said Kapil Arora, partner (infrastructure) at Ernst & Young .
The proposed CAA would ensure that airlines adhere to international standards of setting airfares to ensure transparency, and not catch consumers unawares with sudden increases.
Tariffs shot up nearly 200% on some sectors after the Diwali festival last year, forcing the regulator to issue notices to some airlines. Again in April, tariffs of national carrier Air India dropped very low, worrying other carriers.
"We can't disagree with the ministry on this, as many countries have competition and anti-trust laws. Also the market is often misused to raise or slash fares like what happened during the Leh crisis and Mangalore crash. We need a referee," said Sanat Kaul, chairman, International Foundation for Aviation and Aerospace Development.
The regulator's annual budget, currently 80 crore, could be increased two-folds after it takes on more functions, the official said, adding that an air ticket surcharge of 10-12 could be an option for raising funds for the new body, expected to be formed in the next couple of years.
The proposed regional ombudsman will typically resolve issues between stakeholders, namely airlines, airport operators, passengers and various government and non-government agencies.
Experts say regional ombudsmen will play an important role in an expanding aviation market like India, as they do in other big aviation markets.
"Empowering regional offices is a welcome step, as it would enable speedier action in a country with a fast-growing aviation industry," said Amber Dubey, director (aviation) at consultancy firm KPMG . "USA's FAA has around nine regional offices providing regulatory oversight for the same reason," he added.
Manish Chheda, managing director of consultancy firm Auctus Advisors, said regional ombudsmen were required as over the next decade, air traffic from non-metro centres was projected to rise from 30% at present to almost half of the country's total air traffic.
The CAA blueprint was prepared after studying aviation regulation models of several countries, including those in the UK, the US, China, Germany and France, ministry officials said. Aviation regulatory bodies on the lines of the CAA exist in several countries, including the UK and Singapore.
The government also plans to make the regulator functionally and financially more independent by granting it powers to recruit employees and raise funds.
Under the current set up, recruitment is a long process that happens through the department of personnel and training and the Union Public Service Commission, which often leads to posts in the DGCA lying vacant for long.
"The DGCA is grossly understaffed. We have only 130 employees all over the country and have required 500 more for the last two years. This problem should be addressed when the DGCA becomes the Civil Aviation Authority," DGCA chief Bharat Bhushan had said.
After the ministry gives its views on the bill, it will be put in the public domain for comments from stakeholders and the public. This will be followed by a cabinet note, which will be circulated among the various ministries.
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IMO - instead of the focus being on fares, the focus should be on operational safety and procedures - and conducting audits of airlines on all aspects concerning safety - whether it is maintenance and spares, or time the crew is being asked to fly, or the infrastructure at airports/ ATCs and whether those are up to date.
Let the market determine fares, with the govt. providing a broad framework or similar filing mechanism. _________________ We miss you Nalini! |
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sammyk Member
Joined: 20 Dec 2006 Posts: 2719 Location: Austin, TX
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Posted: Tue Jun 28, 2011 8:20 am Post subject: |
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The_Goat wrote: | The UK's Civil Aviation regulator is also called CAA.
Our chaps had to copy even this |
To be fair, there are dozens of countries that use "Civil Aviation Authority". |
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haree Member
Joined: 13 Feb 2007 Posts: 429 Location: Somewhere on the globe
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Posted: Tue Jun 28, 2011 1:13 pm Post subject: |
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DGCA regulating airfares --- directly translates into "DGCA helping Air India babus with other airline's money in addition to common man's taxes".
Why dont they just let airlines do what is good for the business and try to implement/enforce some standard IATA T&Cs? |
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Nimish Member
Joined: 16 Dec 2006 Posts: 9757 Location: Bangalore, India
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Posted: Tue Jun 28, 2011 1:51 pm Post subject: |
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haree wrote: | DGCA regulating airfares --- directly translates into "DGCA helping Air India babus with other airline's money in addition to common man's taxes".
Why dont they just let airlines do what is good for the business and try to implement/enforce some standard IATA T&Cs? |
Amen - this is not what the DGCA (or CAA) should focus on. _________________ We miss you Nalini! |
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HAWK21M Member
Joined: 19 Dec 2006 Posts: 8132 Location: Mumbai, INDIA
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Posted: Wed Jun 29, 2011 9:02 pm Post subject: |
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I guess EASA is easier to follow for DGCA _________________ Think of the Brighter side !!! |
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