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http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/government-gives-nod-to-proposal-to-replace-dgca-with-new-regulator-caa/articleshow/21015925.cms

Government gives nod to proposal to replace DGCA with new regulator, CAA

11 Jul, 2013

The government today cleared a proposal to replace DGCA with a new aviation regulator with full operational and financial autonomy.

The proposal was cleared at a meeting of the Union Cabinet, sources said here.

The new regulatory body would be called the Civil Aviation Authority (CAA) and would replace the Directorate General of Civil Aviation (DGCA). It will administer and regulate civil aviation safety and manage safety oversight over air transport operators, air service navigation operators and operators of other civil aviation facilities.

Noting that DGCA had limited delegation of financial powers and hence was "incapable of making adequate structural changes" to meet the demands of a dynamic civil aviation sector, the sources said this necessitated its replacement with CAA that would have more administrative and financial powers to deal with the fast-changing aviation scenario.

CAA, like DGCA, would also deal with matters relating to financial stress on safety of air operations, as witnessed in connection with the bankrupt Kingfisher Airlines in October last year.

Issues relating to consumer protection and environment regulations in civil aviation sector would also be addressed by CAA, according to the draft legislation.

CAA is being established to meet the standards set by UN's International Civil Aviation Organisation (ICAO) and in line with aviation regulators in other countries like the Federal Aviation Administration of the US and the UK's CAA.

747-237 · Posted: Fri Jul 12, 2013 6:23 am Post subject:

Fliers may be charged up to Rs 10 for every ticket purchased to fund new aviation regulator

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/cabinet-clears-proposal-to-replace-dgca-with-civil-aviation-authority-fliers-to-bear-the-cost/articleshow/21028991.cms

ssbmat · Member Joined: 20 Dec 2006 Posts: 1710

747-237 · Posted: Thu Jul 31, 2014 8:22 pm Post subject:

http://www.business-standard.com/article/economy-policy/govt-fast-tracking-process-to-replace-dgca-with-an-autonomous-civil-aviation-authority-114073101307_1.html

Govt fast-tracking process to replace DGCA with an autonomous Civil Aviation Authority

July 31, 2014

In what may give a big push to India's attempts to regain its higher safety ranking from US regulator Federal Aviation Administration (FAA), the ministry of civil aviation has circulated for consultation the bill to establish a financially autonomous Civil Aviation Authority (CAA).

A senior official in the ministry said, "The bill to replace the Directorate General of Civil Aviation (DGCA) with CAA has been circulated for consultation. Once we receive comments, we will draft the cabinet note after which it will be tabled in the Parliament." The Cabinet had earlier in February this year approved amendments to the bill for replacing the DGCA with CAA. However, the process got stalled due to declaration of assembly elections in March.

It is not clear, however, if the bill would be introduced in the budget session itself. "We are making efforts to complete the process. The budget session is on for another two weeks. If the cabinet approval comes through, the bill can be introduced in the current session", added the official.

Unlike the DGCA, which functions under the aegis of the ministry of civil aviation the proposed authority would have administrative and financial freedom to meet the functional requirements for an effective aviation safety and oversight system.

The CAA would largely gain revenues from three sources - the Airports Authority of India (AAI) would share a proportion of air navigation service charges amounting to around Rs 32 crore annually. While fees for licensing air traffic control services would bring in around Rs 40 crore a year, a surcharge of Rs 5 per passenger would be levied to pool in about Rs 50 crore to the resources of the new aviation regulator. The CAA would establish a separate fund, the Civil Aviation Authority of India Fund, which would be used for all expenses of the authority. The CAA would have a Chairperson, a Director General (equivalent to a chief executive), not less than seven members but not more than nine members.

The amendments approved to the CAA Bill in February include increasing the value of monetary penalties the authority can charge, appointment of a chairperson on part-time basis and appointment of a joint secretary from the civil aviation ministry as government nominee on the board of CAA.

The role of the chairperson of the CAA would now be supervisory in nature, he would preside over board meetings but operational matters would be dealt by the chief executive or the Director General. Earlier, the draft bill had held that the Chairperson be appointed for a fixed term of five years.

In its amended version, the CAA also proposes more stringent penalties at five times the initial specified amount in event of violations. The amended bill, however, takes away the authority of the regulator to create posts in the proposed body and requires them to take prior approval of the government for posts.

The CAA once established would be financially independent and would be able to recruit flight operation inspectors (FOIs) at market determined rates. FAA, in audits conducted in September and subsequently in December 2013, has expressed severe concerns over the lack of full-time FOIs in the DGCA and had subsequently on January 31 downgraded India to category II of safety rankings.

The downgrade, which clubs India with countries such as Zimbabwe and Indonesia in terms of safety rankings, means that Indian carriers would not be able to increase flights to the US and additional checks will be imposed on existing flights of Air India and Jet Airways when they land in the US. It would additionally impact code-share arrangements between Indian airlines and their American counterparts.

The DGCA has been trying to fast-track processes to meet requirements pointed out by the FAA over the last few months and is scheduled to make a presentation before the US regulator next month. The government has already approved the creation of 75 crucial posts in the DGCA to carry out safety inspections of airlines and private charter companies. It has been decided to pay salaries to the new recruits at market-determined rates to attract talent.

Till now, DGCA did not have any regular FOIs. So pilots and commanders were seconded from scheduled airlines to carry out these functions. These commanders and pilots were paid by the respective airlines and not by the DGCA. Due to such a practice, there were possibilities of conflict of interest, a factor which was pointed out by FAA. The DGCA had not been able to hire full-time FOIs due to its inability to pay them market-linked salaries.

A senior official in DGCA said, "We already have 20 FOIs with us, a number that our consultant has said is enough to approach the FAA with for a fresh audit. We are conducting interviews to hire another 15-20 FOIs and meet FAA officials by the end of next month for a fresh audit."

sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

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