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Airline Operations Regulatory Issues in India: by K Gohain Joint Director General of Civil Aviation
Airline Operations Regulatory Issues in India: by K Gohain Joint Director General of Civil Aviation
K Gohain
Joint Director General of Civil Aviation
Air Transport Scene Pre-1953
Mumbai-Bangalore Mumbai-Chennai
Mumbai-Delhi Mumbai-Hyderabad
Mumbai-Kolkata Mumbai-Trivandrum
Delhi-Bangalore Delhi-Chennai
Delhi-Hyderabad Kolkata-Bangalore
Kolkata-Chennai Kolkata-Delhi
Category II/IIA & III Routes
Category II - Stations in Jammu & Kashmir,
North-East Region, Andaman & Nicobar and
Lakshadweep Islands connected with stations
outside these regions
Category IIA - Routes exclusively within
destinations in Jammu & Kashmir, North-East
Region, Andaman & Nicobar and Lakshadweep
Islands
Category III - Routes other than those
included in Category I and II
ASKM Deployment Requirements
Scheduled airlines are mandatorily required to
deploy in Category II, IIA and III routes, a
specified percentage of capacity deployed in
Category I routes as per the following details –
Category II – At least 10% of capacity deployed on
Routes in Category I
Category IIA – At least 10% of capacity deployed on
Routes in Category II
Category III – At least 50% of capacity deployed on
Routes in Category I
Note: Bagdogra in North Bengal has been included in the
North-East region as it is in the NE FIR and also in the ADI
of North-East
ASKM Deployment Requirements
25
PAX. CARRIED (MILLIONS)
18.17
20
14.54
13.32
13.32
15
12.81
12.23
11.98
11.91
11.86
11.64
10.5
8.84
8.47
10
8.06
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEAR
SHARE OF PRIVATE OPERATORS IN
CARRIAGE OF DOMESTIC PASSENGERS
80
70 68.5
63
61.4
58.8
60
52.8 52.6
50 46.5
% SHARE
30
23.7
20
10
4.9
0.4
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005(*)
YEAR
(*) Data for 2005 is upto Oct.
Daily Average Capacity Provided &
Passengers Carried
Year 2005
Regulatory Requirements
In order to maintain orderly growth of airline operation, to
serve the needs of the country, in an efficient and safe
manner, the Civil Aviation Requirements, Section 3, Air
Transport, Series C, Part II were issued in 1994 which
stipulates the minimum requirements for grant of permit
to operate scheduled passenger air transport services
Scheduled Operator's Permit is granted only to:
A citizen of India; or
A Company or a Corporate provided that:
• It is registered and has its principal place of business within
India;
• Its chairman and at least two-thirds of its directors are
citizens of India; and,
• Its substantial ownership and effective control is vested in
Indian nationals.
Eligibility Requirements
Before the Scheduled Operator's Permit is
issued, an applicant should have:
A subscribed equity capital of not less than Rs. 30
crores in respect of aircraft of maximum take-off mass
exceeding 40,000 kg and not less than Rs. 10 crores
in respect of aircraft of maximum take-off mass not
exceeding 40,000 kg.
A fleet of minimum five aircraft either by outright
purchase or through lease with maximum certified
take-off mass more than 5,700 kg and type certified
meeting the requirements of transport category
aircraft acceptable to DGCA.
Eligibility Requirements Contd..
Sufficient number of flight crew and cabin crew but not less
than three sets of crew per aircraft. The flight crew should
hold current licenses issued by DGCA and appropriate
endorsements on the type of aircraft operated.
Adequate number of AMEs and own maintenance and
repair facilities for maintenance of aircraft at least up to
flight release or 500 hours, whichever is higher. For higher
maintenance, the operator should preferably establish his
own maintenance facilities, but can carry out such
maintenance using facilities of reputed organisation
approved by DGCA.
Sufficient number of flight crew and cabin crew but not less
than three sets of crew per aircraft. The flight crew should
hold current licenses issued by DGCA and appropriate
endorsements on the type of aircraft operated.
Procedural Requirements
An applicant shall first apply for an initial No-
Objection Certificate (NOC). The application shall be
submitted to the Ministry of Civil Aviation in a
prescribed proforma along with requisite fee.
Before grant of NOC, approval of Foreign
Investment Promotion Board (FIPB), if foreign
investment is envisaged, and security clearance of
the Directors and Chairman of the firm is necessary.
Foreign equity upto 40% and NRI/OCB investment
upto 100% would be permitted in the domestic air
transport services.
Equity from foreign airlines is not allowed in
domestic air transport services.
Procedural Requirements Contd..