“The proposal to establish a Civil Aviation Authority (CAA) of India emerged from concerns raised by the International Civil Aviation Organization (ICAO), Parliamentary Committees, and the rapid growth of India’s aviation sector. The objective was to replace the Directorate General of Civil Aviation (DGCA) with an autonomous statutory regulator having greater financial, administrative, and technical independence. Although the proposal gained significant momentum in 2013-2014, the legislation ultimately lapsed and India continues to be regulated by the DGCA under the Ministry of Civil Aviation,” the letter dated August 6 said.
The proposed CAA is envisaged as a statutory body with administrative and financial autonomy, empowered to regulate aviation safety, airworthiness, licensing, certification, consumer protection and regulatory compliance, according to the letter.
“Such an authority would strengthen India’s compliance with ICAO Standards and Recommended Practices (SARPs), improve regulatory effectiveness, enhance global confidence in India’s aviation oversight system and support the sustained growth of one of the world’s largest aviation markets,” it said.
The letter said the proposal was also supported by recommendations arising from the ICAO Universal Safety Oversight Audit Programme, with the organisation emphasising the need for stronger institutional capacity and effective safety oversight. It added that the US Federal Aviation Administration (FAA) had endorsed the proposal during its International Aviation Safety Assessment (IASA) review, while industry stakeholders including the International Air Transport Association (IATA) supported the creation of a modern and adequately resourced statutory authority.
Growth in aviation sector
The FIP said India’s aviation sector had witnessed unprecedented growth over the past two decades, with a significant increase in passenger traffic, aircraft fleets, airports, air navigation services and aviation training organisations.
“The aviation sector is one of the fastest-growing contributors to economic development, trade, tourism and national connectivity. As air traffic continues to expand and aviation technology becomes increasingly complex, there is a corresponding need for a modern, independent and professionally managed regulatory framework that ensures the highest standards of safety, security and consumer protection,” the letter said.
It said the DGCA was established in 1946 under the Aircraft Act, 1934, as an attached office of the Ministry of Civil Aviation. While the structure had adequately served a relatively small aviation sector for decades, the aviation landscape changed dramatically after economic liberalisation in the 1990s and the emergence of private airlines.
By 2010, India had seen rapid growth in domestic passenger traffic, expansion of airline fleets, an increase in airports and air navigation infrastructure, growth in pilot training organisations and maintenance facilities, and greater international connectivity, the letter said.
“These developments highlighted the limitations of regulating a modern aviation industry through a conventional government department,” it said.
The FIP said the DGCA’s status as an attached office of the Ministry of Civil Aviation had resulted in limitations relating to administrative autonomy, financial flexibility, recruitment of technical specialists and timely regulatory decision-making.
The government had subsequently initiated the process of establishing a statutory CAA to create an autonomous, accountable and professionally managed regulator aligned with international best practices, the letter said.
It said the feasibility report for the proposed authority examines its rationale, objectives, organisational framework, financial implications and implementation strategy, drawing upon international best practices and the experience of leading aviation regulators worldwide.