The Directorate General of Civil Aviation (DGCA) has submitted a comprehensive restructuring report to the government, signaling a major reform aimed at bolstering aviation safety oversight and enhancing the protection of air travelers' interests in India. This move could lead to the establishment of a dedicated system focused on promptly addressing consumer grievances.
The restructuring plan envisions transforming the DGCA into a financially and administratively autonomous organization, potentially mirroring the structures of regulatory bodies like the Securities and Exchange Board of India (SEBI) or the Telecom Regulatory Authority of India (TRAI). A Parliamentary panel had earlier advocated for this restructuring to empower the DGCA, especially given the exponential growth in air traffic over the past decade. The current setup faces challenges including staff shortages, which hinder its ability to address issues at the required pace.
The DGCA's report, prepared based on the parliamentary committee's advice and the Union aviation ministry's directions, outlines the proposed restructuring. Sources indicate that the restructuring will be implemented in a phased manner, pending the ministry's review of the report.
One key aspect of the proposed restructuring involves the potential creation of a Civil Aviation Authority (CAA) with statutory status. This new authority could have a dedicated mechanism to safeguard consumer interests and ensure efficient grievance redressal. A self-funded regulator, independent of government grants, would be able to offer competitive, market-linked salaries to attract skilled personnel and invest in advanced technology for effective oversight. Funding options for the CAA may include levying a small charge on flyers.
The concept of an autonomous Civil Aviation Authority has been under consideration for several years. Recent growth in India's air traffic, with airlines ordering nearly 2,000 aircraft, the opening of numerous new airports, and increasingly crowded skies, has accelerated the push for enhanced safety oversight.
In related news, the Supreme Court has recently addressed concerns regarding airline pricing practices, issuing a notice on a Public Interest Litigation (PIL) that challenges dynamic fares and baggage policies. The PIL argues that the current regulatory framework, where the Airports Economic Regulatory Authority (AERA) only regulates airport tariffs and the DGCA's Passenger Charter is non-binding, allows airlines to impose unpredictable charges without sufficient public accountability or consideration for consumer welfare. The court has asked the government, DGCA, and AERAI to respond within four weeks.
The petitioner in the PIL has proposed the establishment of an independent aviation tariff and consumer protection commission with statutory backing and quasi-judicial powers. This body would have the authority to regulate dynamic pricing, review fare structures, set baggage norms, standardize cancellation and refund compensation, and mandate on-site grievance redressal at airports.
Furthermore, new refund rules have been introduced by the DGCA to enhance passenger rights and airline transparency. These rules aim to simplify refund processes, protect consumer rights, and encourage more people to book flights without fear of financial loss due to unexpected changes. Under the new policy, passengers will benefit from a 48-hour free cancellation window. Airlines will also need to ensure that refund-related grievances are resolved promptly and fairly, with potential penalties for non-compliance.
