Wednesday, March 03, 2010

A regulator for our runways

Indian aviation is now maturing and becoming larger in size. In order to provide it with an institutional framework, a committee was formed to produce a roadmap for the civil aviation sector. This committee headed by Naresh Chandra, former Cabinet secretary, gave its report on November 30, 2003. It provided for an institutional framework for growth and suggested continued institutional intervention in the following areas: (i) safety regulation, (ii) limited economic regulation, (iii) essential but uneconomic air services, (iv) management of bilaterals and (v) aviation security. The report was accepted by the government. So far, the Airport Economic Regulatory Authority (AERA) has been established to oversee the airports and look into various airport charges, including navigation charges.
On the issue of safety, the committee looked into the deficiencies of the office of Directorate General of Civil Aviation (DGCA). It suggested that there should be a specialised regulator overseeing safety issues, separate from the economic regulator. It further stated that DGCA remains well-suited for this function, however, it fell short of recommending a proper framework for DGCA, which will not only give it the independence but also the financial ability to overcome the security deficiencies that are making the Indian safety a nightmarish issue.
03/03/10 Sanat Kaul/Financial Express
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