Mission

It will be our endeavour to maintain a competitive civil aviation environment which ensures safety in accordance with international standards and enables the provision of services in a reliable and efficient manner at improving levels of service and cost while contributing to the social and economic development of India and the region.

Strategic Objectives

The objectives of this policy are the creation and continued facilitation of a competitive and service-oriented civil aviation environment in which:

the interests of the users of civil aviation are the guiding force behind all decisions, systems and arrangements,safe, efficient , reliable and widespread high quality air transport services are provided at reasonable prices,a well-defined regulatory framework caters to changing needs and circumstances,all players and stakeholders are assured of a level playing field,private participation is encouraged and opportunities created for investors to realize adequate returns on their investments,recognizing that aviation today is an important element of infrastructure, rapid upgradation of airport infrastructure to world class with priority to the busiest airports and airports used by foreign travelers is stimulated and ensured,recognizing that air cargo transport is vital to the economic growth of the country, creation and development of specific infrastructure for air transportation of cargo and express cargo is encouraged,domestic and international aviation in the country are encouraged to grow at par with world aviation industry, inter-linkages with other modes of transport are encouraged and stimulated ,trade, tourism and overall economic activity and growth is encouraged andinternational cooperation in aviation and development in tune with international trends and best practices, within framework of our airspace sovereignty is promoted.

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Consultation with Users

The success of any policy depends upon the benefits it gives to the various users. A constant interaction with and amongst all categories of users is paramount for successful implementation of and constant improvement in the policy. There is an urgent need for an institutional arrangement at different levels for such interactions.

Therefore, Facilitation Committees consisting of representatives of various users of civil aviation sector i.e. government, passengers, tour and travel operators, aircraft-operators, airport-operators, exporters and importers, cargo handling agents, aerosports, Flying Clubs, Engineering etc. will be set up at national, regional and local levels to ensure that the interests of ultimate users are best safeguarded. There will be regular monitoring and feedback between the Facilitation Committees of national regional and local levels. There will be mandatory prior consultation with these Facilitation Committees before amendments in policy/ rules / regulations are undertaken.

Government will also encourage agencies in public sector to empower local management to ensure timely decisions/ actions in consultation with users, and also increased employee involvement.

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Regulatory Framework

In the context of a multiplicity of airlines, airport operators (including private sector), and the possibility of oligopolistic practices, there is a need for a regulatory authority which could work as a watchdog, as well as a facilitator for the sector, prescribe and enforce minimum standards for all agencies, settle disputes with regard to abuse of monopoly and ensure level playing field for all agencies. Therefore, a statutory autonomous Civil Aviation Authority (CAA) will be constituted. The basic objectives of setting up of the Authority will be to ensure aviation safety, security and effective regulation of air transport in the country in the liberalised environment.

The functions of the CAA will be as under:

set the standards for various agencies and personnel of civil aviation sector issue license to these agencies and personnel. endure that these agencies and personnel continuously fulfil the standards, take appropriate corrective action against the agencies and personnel for violations of set standards including withdrawal of license, if warranted. ensure that there are no unfair trade practices and market dominance through encouragement of entry and fostering of competition in accordance with Competition Policy of the Government and ensure level playing field for all agencies. study and analyse the trends in international and domestic civil aviation, project likely future scenario and publish periodical reports. The agencies mentioned above include airport, airport-operators, passenger aircraft operators, cargo aircraft operators, helicopters, private aircraft operators, flying clubs, aero-sports clubs, security agency, training institute, air-travel operators or any other agency having role in civil aviation sector. The personnel mentioned above include pilots, aircraft maintenance engineers/technicians, air traffic controllers, and personnel engaged in the maintenance of ground navigational and landing aids.

Civil Aviation Authority will conduct safety and security audit including flight inspections of the concerned agencies to ensure that they are meeting the prescribed standards. Civil Aviation Authority will be required to publish Annual Report on the Air Safety and Security Environment in the country.

Civil Aviation Authority will also be required to make available information regarding passenger and cargo traffic including regular analysis on a monthly basis in an appropriate consolidated format on a commercial basis.

A new Civil Aviation Act will be framed to replace the existing Aircraft Act, 1934. Though the Aircraft Act has served well so far, the aviation scenario has now changed considerably. Moreover, concerns regarding security will be duly reflected in the Act. Thus, the new Act will be in tune with the present day civil aviation scenario, and would also put the proposed CAA in place.

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Private Sector Participation

• Private sector participation will be a major thrust area in the civil aviation sector for prompting investment, improving quality and efficiency and increasing competition.
• Conducive competitive regulatory framework with minimal controls will be created to encourage entry and operation of private airlines/ airports.
• Private sector investment in the construction/ upgradations/ operation of new as well as existing airports including cargo related infrastructure will be encouraged.
• Rationalization of various charges and price of ATF/AVGas will be undertaken to render operation of smaller aircraft viable so as to encourage major investment in feeder and regional air services by the private sector. 
• Training Institutes for pilots, flight engineers, maintenance personnel, air-traffic controller, security in private sector will be encouraged.

Private sector investment in non-aeronautical activities like shopping complex, golf course, Entertainment Park, aero-sports etc. near airports will be encouraged to increase revenue, improve viability of airports and to promote tourism.Government will reduce its equity in all organizations like Indian Airlines, Air India, Pavan Hans Helicopter Corporation (PHHL). Government will encourage employee participation through issue of shares and ESOP. 

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Airport Infrastructure
 
The Government will aim at providing airport infrastructure capacity in accordance with demand, ensuring maximum utilization of available capacities and efficiently managing the airport infrastructure by increasing involvement of private sector.

Greenfield airport will be permitted by the Government where the existing airport is unable to meet the projected requirement of traffic or a new focal point of traffic emerges with sufficient viability and the new location is normally not within an aerial distance of 150 kilometers of an existing airport.

Encouragement will be given to development/ construction in private sector of small airstrips/ Helipads /Heliports, which are smaller and cheaper to construct. These will be particularly suitable in remote hilly or island areas, large business, city centers, factory locations and at other important nodal points.

This will also make small air-taxi operations a viable proposition. Private sector will be free to undertake:

construction and operation of new airports/airstrips/ Helipads/ Heliports including cargo complexes, Express cargo terminals, cargo satellite cities and cargo handling facilities. upgradation and operation of existing airports/airstrips/Helipads/ Heliports in consultation with the existing operator including cargo complexes, Express cargo terminals, cargo satellite cities and cargo handling facilities.

Foreign equity participation will be permitted up to 74 % with automatic approval and 100 % with special permission of government.

Private sector participation will include participation of state government, urban local bodies, private companies, individuals and joint ventures on Build-Own-Operate (BOO) basis or any other pattern of ownership and management depending on the circumstances.

Restructuring of major airports of Airports Authority of India will be undertaken through long-term lease to private investors for efficient management, improvement of standards of services/ facilities and attracting private investmentAt privately managed airports, air traffic control (ATC) and aviation security will continue to be provided by the Airports Authority of India (AAI) and customs and immigration facilities by respective Government departments.

All airports /airstrips /helipads /heliports undertaking scheduled air-services will be licensed by Civil Aviation Authority.Government will not fix airport/ airstrip/ heliport/ helipad charges and Airport/ airstrip/ heliport/ helipad operators will follow ICAO guidelines for levying airport/ airstrip/ heliport/ helipad charges based on cost recovery principle.

CAA will ensure fair play between different airport/ airstrip/ heliport/ helipad operators and user agencies so that no airport/ airstrip/ heliport/ helipad operator is accused of discriminating against any particular airline or any other user. Similarly, Government will ensure that no airport-operator is discriminated against with regard to allotment as point of call, if there is demand for air services from such airport.

Additional number of domestic airports will be declared as international airports to ensure an international airport in every region of the country, boost to trade and tourism and adequate capacity in all the routes.

Major thrust will be given for increasing the share of commercial revenue from non-aeronautical sources by giving total freedom to airport/ airstrip/ heliport/ helipad operators in the matter of raising non-aeronautical revenue.

New Ground Handling regulations will be introduced which will have following broad particulars :

At airports managed by AAI, new private investors will be allowed by AAI to undertake ground handling besides national carriers and self-handling by carriers which will increase competition resulting in improvement in services and reduction in costs.At private airports, at least limited competition will be mandatory.A rationalized dynamic system for Airport Charges for AAI airports will be introduced for optimum utilization of airport by using peak and off-peak time charges, increasing revenue of airport operatorspromoting airports in far-flung regions by having varying airport charges from airport to airport depending upon the facilities available at the airport.New land use guidelines will be formulated for utilizing vacant land of AAIVacant land at airports will be evaluated for construction of aviation related activities (e.g. cargo complexes, aircraft maintenance facilities, etc)

Such airports where there is likelihood of future use for civil aviation purposes, it will be used for such purposes with private sector participation or it may be handed over to state governments for upgradation / maintenance for civil aviation purposes. 

Land at such airports where there is no likelihood of future use for civil aviation purposes will be utilized for other commercial purposes either by AAI itself or by handing them over to state governments. Effective steps will be taken for removing encroachments from AAI land and if necessary, comprehensive rehabilitation package will be formulated. 

Cargo handlingInfrastructure like satellite freight cities with multi-modal transport, cargo terminals, cold storage centers, automatic storage and retrieval systems, mechanized transport of cargo, dedicated express cargo terminals with airside and city side openings, computerization and automation etc. will be set up on priority basis. 

Private sector participation in cargo handling will be encouraged. Electronic Data Interchange systems will be developed and linked amongst all stakeholders in the trade. 

Air Cargo Complexes and dedicated express cargo terminals (with airside and city-side openings) will be integral part of all major airports. 

Efforts will be made to ensure the following facilitation norms:

International passengers clearance within 45 minutes of arrival and 60 minutes for departureDomestic Passenger clearance within 30 minutes of arrival and 45 minutes for departureInternational cargo clearance within 12 hours for export and 24 hours for importGuidelines for naming of airports will be formulated to ensure that the airports are named after the cities they are situated in as per international norms.

Air Traffic services

• Air Traffic controllers will be licensed by CAA.
• AAI will continue to provide Air Traffic Services over the Indian air Space as per standards set by CAA in accordance with ICAO norms.
• Approach and aerodrome control services may be provided by licensed ATCs engaged by the airport operators.
• New satellite based CNS/ATM systems will be introduced as per ICAO's Regional Plan
• India to have a significant say in the provision of new satellite based CNS/ATM services in Asia- pacific/ SAARC regional airspace
• Fresh Air traffic Services and Controlling (Departure, holding and approach) procedures will be evolved for helicopters and small aircraft to exploit their inherent advantages and to reduce the cost of their operations and efficient use of airspace without compromising safety. This will also give boost to Flying Clubs.
• Efforts will be made for Civil-Military co-ordination for :
  • Greater sharing of civil and military airspace for unidirectional air-corridors and straightening of air-routes to save fuel and time,
  • Uniform air-traffic procedures,
  • Additional slots for civilian flights at military airports,
  • Sharing of revenues at civil enclaves

The government will encourage provision of safe passenger and cargo air transport services to every region of the country at economic prices. 

Private sector participation in providing domestic passengers and cargo air transport services will be encouraged.Recognising that passenger and cargo air transport services to many regions will not be possible unless operation of smaller aircraft is made economically viable either on stand-alone basis or in conjunction with major trunk routes, Air Turbine Fuel (ATF) for turbo prop aircraft operations will be provided at par with price for international air services, and a cap on sales tax of 4%. Operation of smaller aircraft and Helicopters will be further encouraged through rationalization of airport charges, Inland Air Travel Tax (IATT) and Avgas prices. For the North-East region, IATT has been fully exempted on all routes. 

Permission to start scheduled passenger and cargo air transport service is to be given by government on demonstration of competency, minimum capital requirement and viability of the company to provide a safe and reliable service.Permission for import of aircraft will be given by government keeping in view the details and types of aircraft, their airworthiness, seating/ cargo capacity, mode of acquisition, security and training arrangement of the operator, maintenance facility, operating manual etc. 

Thereafter, permit/license will be issued by CAA on fulfilling the above procedures. Government and CAA will ensure that there is no discrimination between different passenger and cargo air-operators.Foreign equity up to 40 % and Non-Resident Indian / OCB investment up to 100 % will be permitted. However, participation from foreign airlines either through equity or OCB route will not be permitted. 

No minimum number of aircraft is required for an air-operator to start a passenger and cargo air transport service. However, the minimum requirement of aircraft for issue of scheduled operator's permit will be three. 

Route Dispersal guidelines shall be dynamic and periodically reviewed at fixed intervals with a view to promote air transport services in remote areas. 

Only limited capacity controls will be applied just to check predatory creation of capacities. Wet leasing of aircrafts by air-operator will be permitted Grounding/ Confiscation of leased aircraft by regulatory authorities for recovery of outstanding dues will be prohibited. 

There will be freedom to operate non-revenue and passenger charter and cargo flights to foreign destinations.Helicopter operations will be given a new boost by a total change in outlook. At present, fixed wing norms with minor changes are broadly applied to rotary wing aircraft. Fresh guidelines will be formulated in consultation with user industry from the point of view of rotary wing aircraft. Fresh Air Traffic Services and controlling procedures, which exploit the inherent advantages of helicopter without compromising safety, will be evolved.

This will also reduce the cost of operations of helicopters and efficient use of airspace. Encouragement will be given to use of helicopters in the areas of heli-tourism, adventure sports, mountaineering/ trekking, point-to-point heli-services to bypass traffic congestion on the road, connecting remote areas and islands in Northeast, Andaman and Nicobar and Lakshdweep, religious places, sky crane for construction/ laying of transmission lines etc. 

Flying clubs, Aerosports like hang-gliding, ballooning, heli-skiing, para-jumping etc. will be promoted by encouraging private investment and formulating liberalized guidelines in consultation with users. This will include rationalized Avgas prices and liberalized air space control.

Special consideration will also be given to Private operators and Corporate operators by way of rationalized Avgas prices, encouragement for construction of smaller airstrips/helipad et. in private sector.

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International Air Transport

• The government will aim at providing adequate capacity in accordance with demand by first restructuring of national carriers and maximizing Indian participation in the international air transport market and then involving foreign carriers in case Indian carriers are unable to provide.
• Adequate capacity will be ensured for development of trade and tourism in the country. 
  
• Liberal bilateral rights will be given for promoting international operations to less developed regions of the country as well as to ill-connected far away countries (e.g. Latin America) to promote trade and tourism in those regions.
• In the long term, it is envisaged that there will be two national carriers i.e. Air-India and Indian Airlines both fully authorized to operate in international and domestic sectors.
• However, the focus of Air-India will remain international sector and that of Indian Airlines domestic sector. 
• There will be freedom to international tourist Charter operation to different custom airports.
• Government will establish an objective and well-defined mechanism for sharing of international traffic rights amongst airlines in a transparent manner.
• Government will ensure that there will be no discrimination between different airport operators in allotting capacity to foreign carriers as per bilateral agreements if demand exists.
• Efforts will be made by national carriers to join global alliances in their own commercial interest and in the interest of travelling passengers through code-sharing, exchange of frequent- flier programs etc.
• There will be no restriction on international cargo flights. However, they will not be allowed to carry domestic cargo on their flights within the country.
• Tourist charters from domestic airports to foreign destinations will also be permitted subject to safeguards for scheduled operations.
• Air India and Indian Airlines would be guaranteed the use of traffic rights actually being utilised by them for five years following privatisation.

The government will give thrust on use of Information technology in all aspects of civil aviation sector. Each organisation will have time-bound IT action plan. The following information will be made available by CAA on internet:

• Policies/ Rules/ Regulations related to aviation sector
• Status of various pending proposal and applications
• Syllabi, schedule and results of various examinations conducted by the CAA
• Increasing use of Intranet/ video-conferencing facilities for consultation for quick decision making and reducing administrative costs
• In the national carriers , Automated Revenue Management System (ARMS) will be increasingly used for flexible tariffs and maximisation of revenue
• Internet based flight reservation , inquiry and status information system will be introduced
• There will be web-site for all major airports where information required by various users like passenger facilitation ,transport facilities to and from city, duty free shops, car parking, cargo, guide map etc. will be available
• Electronic data interchange (EDI) system will be introduced in cargo terminals linking all stakeholders for quick transactions and availability of latest information about the status of cargo movement.

In the Northeast region and other remote areas, the management of airport infrastructure as well as air services is not economically viable because of low utilisation and low fare structures etc. However, given the topography and inaccessability of the region, the need for such infrastructure and air services is much greater. But at the same time, forcing commercial airlines and airport operators to invest in these areas, distort the functioning in other areas also and affect their efficient functioning commercially. Therefore, there is need to correct these imbalances. 

It has been decided to exempt all the currently operated routes in the North-East from payment of Inland Air Travel Tax (IATT). The decisions to provide ATF to turbo prop aircraft operations at par with price for international air services and capping of sales tax at 4% would also encourage new air services in the North-East. Operation of smaller aircraft and helicopters for passenger and cargo flights will be further encouraged through rationalisation of airport charges and Avgas prices. 

Airport Infrastructure will be upgraded wherever necessary keeping in mind the linkage with the aircraft type and traffic profile. 

Adequate funds as grant-in-aid through North East Council (NEC) will be made available for the infrastructure development work needed to be carried out in the North-East region. 

The air-links between the capitals of the States in the North-East region and between major stations on both sides of the Brahmaputra river will be encouraged. 

Guwahati and Calcutta will be developed as hub station and main base of turbo-prop aircraft operations by the airlinesRegular airservices will be encouraged at convenient timings to enable onward connections to other parts of the country without involving night stop. 

Suitable infrastructure like hotels, organised taxi-services at the airports and tourist spots in the North-East will be encouraged to help growth in tourism in the region.

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Tourism and Trade Promotion

Tourism and trade sectors are closely linked to civil aviation sector. Therefore it is important that airport infrastructure and air services are planned keeping in view the requirement and promotion of these sectors. Multi-modal approach will be used for planning to ensure better connectivity.

A thrust for international tourism in India will be given by :

• Providing freedom to International Tourist Charters to all airports linking places of tourist interest
• Declaring additional airports as international airports resulting in easy connectivity and better services,
• Upgradation of airports at places of Tourist interest like Buddhist circuit, sanctuaries, beach resorts etc.
• Encouraging private sector participation in building tourist infrastructure near airports like Golf Course, Amusement park, Business centres, Duty Free shopping complexes of international class, Aviation recreation activities, Adventure aviation, hang-gliding, Microlight aircraft, Parachuting etc.
• Efforts will be made to issue visa on arrival at the airport in larger number of cases.
• Improvement in Passenger facilitation and sensitisation of personnel of immigration, customs, security and AAI at airport to make them more courteous and passenger friendly.

• Abolition of On-Board Courier Scheme to facilitate courier trade
• Introduction of "Known Shipper " scheme for reducing dwell time in exports by doing away with "cooling off" requirement.
• Introduction of EDI (Electronic Data Interchange) interlinking trade agencies, customs, immigration for faster efficient trade transactions.
• Private sector participation in cargo handling for increasing competition and improved services.

Standards for civil aviation safety for all agencies will be set as per international norms prescribed by ICAO and enforced by DGCA/CAA:

• New Communication, Navigation Surveillance/ Air Traffic Management (CNS/ATM) system will be introduced on a priority basis as per ICAO's regional plan.Safety audit of various agencies in the civil aviation sector will be carried out by DGCA/ CAA.
• Installation of Airborne Collision Avoidance system (ACAS) will be mandatory on aircraft having seating capacity of more than 30 or maximum payload capacity of more than 3 tones.
• Regular Flight Inspections will be carried out by DGCA/ CAARegular and systematic monitoring of Digital Flight Data Recorder (DFDR) will be carried out by CAA.
• Excellence in maintenance of equipment would be accorded high priority and system will be further refined to safeguard against any malfunctioning leading to loss of life or property.
• The personnel should be specifically trained in responding to any safety-related emergency situation and role and responsibility of every functionary should be clearly specified. Regular mock exercises will be conducted to deal with various possible emergencies.

• A strict national civil aviation security programme to safeguard civil aviation operations against acts of unlawful interference will be established through regulations, practices and procedures, which take account of the safety, regularity and efficiency of flights. 
  
• Periodic review of threat perception will be carried out taking into account the international situation, internal security scenario and other relevant inputs.
• Security arrangements and drills will be updated and upgraded regularly on this basis.Strict security standards/ security programme will be set by BCAS (Bureau of Civil Aviation Security) under CAA as per ICAO Standards and recommended Practices with periodical review and enforced by them through regular security audit of various agencies involved. 
• Airport Security will be primary responsibility of AAI in all the airports whether managed by AAI or by private operators, as per the standards set by CAA. AAI will reorient its structure and processes suitably for the purpose.
• Aircraft security will be primary responsibility of Airline-operator as per the standards set by CAA. Suitable manpower, training and procedures will be provided and set up by the airline operators to ensure this.
• All arrangements made and personnel engaged for security functions will have to be licensed/ cleared by BCAS.Evolving technologies and equipments will be constantly scanned for identifying those more suited to our secuity needs and their use will be encouraged thereby resulting in more effective security arrangements with leaner organisations.Emphasis will be given on unobtrusive, effective, passenger-friendly security.
• Emphasis will be given for state-of-art training of personnel engaged in security functions including in the areas of use of modern technology, passenger friendliness, specific requirements of aviation security. Special training modules will be developed for all types of possible emergencies, with clear analysis of different parameters, options available with consequent implications, and tune to developing requisite mindset and skills to act effectively. 
• Contingency plans will be developed, kept up-to-date and the resources will be made available to safeguard airport and ground facilities used in civil aviation against acts of unlawful interference.
  
• Effective measures relating to passengers and their cabin luggage, checked baggage, cargo and other goods and access control will be taken as per international standards and recommended practices to prevent weapons, explosives or any other dangerous devices which may be used to commit an act of unlawful interference, the carriage or bearing of which is not authorised from being introduced, by any means whatsoever, on-board an aircraft engaged in civil aviation.
• The plans and procedures for management of response to acts of unlawful interference in civil aviation operations would be reviewed and suitably modified from time to time.
  

The role of aviation support services like human resource development, maintenance facilities and manufacture of aircraft is very important, as these are the backbone of civil aviation services. These services should be available in state-of-art condition in adequate supply in accordance with demand. For this, the role of private sector needs to be emphasised.

Training 

• Standards and guidelines for training institutions will be prescribed and enforced by CAA.
• Private sector participation will be encouraged in training institution for pilots, maintenance personnel, security staff and air-traffic controllers.
• Existing training and management institutes like Indira Gandhi Rashtriya Uran Akademi (IGRUA), National Institute of Aviation Management and Research (NIAMR), Civil Aviation Training College (CATC), Central Training Establishment (CTE), Flying Clubs etc. will be strengthened by involvement of private sector.
• Emphasis will be given for training of personnel for customer service including safety aspects of various equipment at the work places.
  

Maintenance 

• Private sector participation will be encouraged in existing maintenance infrastructure of Indian Airlines and Air India like Jet Engine Overhaul Complex (JEOC) and new maintenance facilities including engine overhaul and repairs with up to 100 % foreign equity.
  

Manufacture of Aircraft/ Engine 

• Indigenous design, development and manufacture of light trainer and small transport aircraft , engine, components and spares etc will be encouraged 
• Offset clauses for sourcing aviation products/services from India will be incorporated in the RFQ itself for import of aircraft by national carriers.
• Private sector participation will be encouraged.
• Co-ordination with Department of Defence Production, Defence Research and Development Organization (DRDO), Hindustan Aeronautics Limited (HAL), Bharat Heavy Electrical Limited (BHEL) and other organisations will be strengthened.

• India will continue to take active interest in the formulation of global policies on civil aviation and promote international cooperation between member states of ICAO to develop global aviation and infrastructure.
• India will endeavour to provide leadership role in SAARC region for training in safety, security and airworthiness certification and providing maintenance facilities for aircraft new initiatives will be undertaken to promote tourism, travel and trade.
• Liberal exchange of traffic rights, simpler and easier tourist charter operations and unilateral open sky policy for cargo policy will be followed in our relations with the countries of this region. Endeavour will also be made to secure cooperation and coordination in air-routes, planning, maintenance facilities, air space management problems etc.
• India will ensure participation in International Co-operation programmes like
Co-operative development of Operational Safety and Continued Airworthiness Programme (COSCAP) for training by ICAO experts
• European Union Project for cooperation in civil aviation sector with European countries
• Regional Co-operation with for development/ provision of satellite based CNS / ATM systems as per ICAO plan

A number of department/ agencies are involved in the development of civil aviation infrastructure and facilitating the convenience of the traveling public. Inter-linkages with other modes of transport for travel and trade need to be emphasised.

An Inter-Ministerial Standing Committee will be constituted for coordination with Ministries of Commerce, Tourism, Industry, Railways, Surface Transport, Defence, Home Affairs (Immigration and Security), Finance (Customs) and External Affairs.

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