BackRegulators set to get powers to levy penalties on errant airlines, airports
Under the new norms, DGCA can impose monetary penalties on any airline for violation of safety rules; BCAS will do the same for any security-related violations
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New Delhi: India’s aviation regulators are set to get more powers with the civil aviation ministry planning to move a cabinet note that allows the regulators to impose penalties on errant airlines and airports.
The aviation safety regulator Directorate General of Civil Aviation and security regulator Bureau of Civil Aviation Security (BCAS) currently do not have powers to levy a penalty.
“They have power to suspend or rescind the license itself but nothing short of that. So what we are saying is that there should be a provision for levy of penalty," civil aviation secretary Rajiv Nayan Choubey said in an interview. The move will require changes in the Aircraft Act.
The cabinet note will be sent to other ministries in the next few weeks for consultations.
“In the winter session, we will introduce this in the Parliament," Choubey said. The session typically starts late November.
Under the new regulations, DGCA can impose monetary penalties on any airline for violation of safety rules or issues related to passenger complaints while BCAS will do the same for any security-related violations, he said.
Once the Parliament clears the changes, the ministry will decide on the actual penalties.
India’s domestic air passenger traffic has been growing 20% a year for the past two years and the government is aiming it will exceed 300 million by 2022 from 80 million now.
The existing powers of DGCA allows the regulator to ask airlines to refund passengers, rebook on other flights, provide hotel accommodation and give compensation for denied boarding, flight cancellations and delayed flights beyond two hours.
But it has to approach the courts and establish its case if it wants to impose a fine.
Former director general of civil aviation Kanu Gohain said a change in rules will be good for the sector—a regulator can impose a penalty if a pilot is found drunk, for instance.
“The decision will be immediate, decisive and will act as a deterrent," he said.
The ministry should, however, set up an appellate board so that the affected parties can appeal a ruling.
“There is a flip side also, in such cases they have to move very cautiously so that it does not become a nightmare where people arbitrarily exercise their authorities. That can certainly be controlled by having an appeals board where the matters can go for a hearing," he said.
Airlines have recently approached the Delhi high court over a ministry directive that mandated a cut in baggage charges announced by airlines. The court did not provide interim relief to the airlines.
Such penalties are quite common in the European Union and not so much in a highly capitalist markets such as the US, said Steve Forte, a former chief executive of Jet Airways (India) Ltd.
“They (EU) have fines for excessive delays caused by the airlines (not ATC or weather) and other penalties," the New York-based Forte said. “To have reasonable penalties for lack of performance might be a good thing in India although there has to be an overseeing agency to keep airlines honest, as they might adopt bogus excuses for not paying penalties. It is also possible such imposed rules could give airlines the pretext to raise fares even if marginally so."
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