Aviation Laws In India

By-Purujit Mongia

1. The Aircraft Act, 1934 and the Aircraft Rules, 1937

These legislations were enacted to control the manufacture, possession, use, operation, sale, and
the import and export of aircrafts. They stipulate parameters for determining airworthiness,
maintenance of aircrafts, general conditions for flying and safety, registration of aircrafts and
conduct of investigations.

2. The Civil Aviation Requirements

They stipulate general guidelines regarding airworthiness, airport standards and licensing, aircraft
design standards and type certification, flight crew standards and licensing, aircraft operations, air
space and air traffic management, aviation environment protection etc.

3. The Aircraft (Carriage of Dangerous Goods) Rules, 2003

It regulates air carriage of dangerous goods like explosives, radioactive material etc. and also
provides for the establishment of training programs by or on behalf of shippers of dangerous goods,
operators, ground handling agencies, freight forwarders and agencies involved in the security
screening of passengers, their baggage and cargo.

4. The Air Corporations Act, 1953

It provides for the establishment of air corporations, namely, Indian Airlines and Air India
International and also facilitates acquisitions by such corporations.

5. The Airports Authority of India Act, 1994 ("AAI Act") and Rules

It established the AAI to administer and manage airports and aeronautical communication stations.
The AAI Act was enacted to constitute and formulate the framework within which an authority for
governing the airport infrastructure would be established. The AAI Act vests the AAI with the
mandatory function of managing the airports, civil enclaves, aeronautical communication stations,
eviction of unauthorised occupants of airport premises and to provide air traffic services and air
transport services at any airport and civil enclave.

6. The Carriage by Air Act, 1972

The act seeks to implement the provisions of the Warsaw Convention relating to international
carriage by air, which affixes liability for international carriage of persons, luggage or goods
performed by aircraft for reward. 17

7. The Tokyo Convention Act, 1975

 This legislation was enacted to implement the provisions of the Tokyo Convention.18 It applies the
penal law of India to an act or omission committed on board an Indian-registered aircraft while in
flight elsewhere than in or over India

8. The Anti-Hijacking Act, 1982

The Anti-Hijacking Act implements the Convention for the Suppression of Unlawful Seizure of
Aircraft and provides for punishment for the offence of hijacking.

9. The Suppression of Unlawful Acts against Safety of Civil Aviation Act, 1982

The Suppression of Unlawful Acts against Safety of Civil Aviation Act, 1982 implements the above
mentioned Convention and provides for punishment of various offences like committing violence on
board an aircraft in flight, offences at airports, causing destruction of or damage to navigation
facilities etc. The objective of the Convention is achieved through both these legislations.

10. The Airports Economic Regulatory Authority of India Act,2008 ("AERA Act")

AERA regulates tariffs and other aeronautical charges, as well as monitors airport's performance
standards. The Act also established the Appellate Tribunal which adjudicates disputes between the
service providers inter se or between service providers and consumer groups.

Regulatory Bodies

Directorate General of Civil Aviation15

The Directorate General of Civil Aviation ("DGCA") established under the Ministry of Civil Aviation is the
main regulatory body that supervises civil aviation in India. The functions of the DGCA include regulation
of air transport services to and from and within India in compliance with the Aircraft Rules, 1937,
licensing of pilots, aircraft maintenance engineers and monitoring of flight crew standards registration of
civil aircrafts and certifying their airworthiness, investigation of minor air incidents and providing
technical assistance to Courts / committees of Inquiry appointed by the Government; supervision over
Flying/Gliding Clubs, licensing, safety oversight and surveillance of aerodromes and air carriers, advising
the Government on matters relating to air transport including bilateral air services agreements with
foreign countries.

Airports Authority of India

The Airports Authority of India ("AAI") was established by the Airports Authority of India Act, 1994
formed by the merger of International Airports Authority of India and National Airports Authority
through the Airports Authority Act, which came into existence on 1st April 1995 with a view to
accelerate the integrated development, expansion and modernization of the operational, terminal and
cargo facilities at the airports in the country conforming to international standards, the AAI is entrusted
with the task of regulating airports all over India.

Bureau of Civil Aviation Security 16

The Bureau of Civil Aviation Security ("BCAS") was initially set up as a cell of the DGCA in 1978. It served
to coordinate, monitor, inspect and train personnel in civil aviation security matters. The BCAS is the
regulator for civil aviation security in India. Currently, its functions include laying down standards and
measures in respect of security of civil flights at international and domestic airports in India and Indian
aircraft operators at foreign airports and standards for pre-embarkation security and anti-sabotage
measures in respect to civil flights and ensuring their compliance.

Airports Economic Regulatory Authority

Airports Economic Regulatory Authority ("AERA"), regulates tariffs and other aeronautical charges, as
well as monitors airport's performance standards. It creates a level playing field and fosters healthy
competition amongst all major airports (government owned, public private partnership – based,
Private), encourage investment in airport facilities, regulation of tariffs of aeronautical services,
protection of reasonable interests of users, operation of efficient, economic and viable airports

Important industry associations

Federation of Indian Airlines, Air Cargo Agents Association of India, Indian Commercial Pilots'
Association, Aeronautical Society of India.

Tax laws
The 12.36% service tax on air tickets, landing and navigation charges has kept the cost of air travel high.
The government has recently contemplated the exemption of the sale of airline tickets from service tax.
19

In addition, high rates of sales tax (as high as 30% in some states) to excise duty at the rate of 8.2% on
ATF have also resulted in very high operating costs for the Indian air carriers. Keeping in view the fact
that all the airlines are constituted as companies, applicable tax rates on dividend distribution tax,
corporate tax and sale of securities of such companies would be akin to any other company
incorporated in India.