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This is an archive article published on March 23, 2011

Proposed aviation authority to have financial autonomy

CAA would be given financial autonomy and the power to recruit its own cadre.

The panel formed to look into the formation of the proposed Civil Aviation Authority is expected to submit its report to civil aviation ministry soon,said senior civil aviation ministry officials. By April-end,the ministry is likely to finalise the authority’s structure.

The panel is likely to recommend two-three models,which will subsume the current aviation regulator Directorate General of Civil Aviation (DGCA) and the proposed Ombudsman to address the flyers’ woes related to compensations,airfare charges and baggage handling.

“Besides,the proposed authority would be tasked with three other areas — environmental issues,grievance redressing and economic issues,” an official told The Indian Express.

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“CAA would be given financial autonomy and the power to recruit its own cadre. In addition,the authority would look into any other economic matter the government may decide from time-to-time,” said the source.

As of now,DGCA,whose primary function is to ensure air safety,has to look into all other airlines’ related issues,like passenger complaints and licensing of airports and pilots. “DGCA has neither the financial autonomy nor the power to recruit,” said another official. DGCA,at present,has a staff strength of 260,as against an immediate requirement of at least 450. Many of its current staff is on secondment from airlines and airports.

The proposed CAA would look into issues like fare hike,airlines’ cartelisation and competition issues. “Once the panel gives its recommendations,we will draft the Cabinet proposal on the legislation,” said the source. The process will take another year before it takes shape. The ministry will draft the CAA Bill,which will then be scrutinised by a parliamentary panel before being placed in both the Houses for their final stamp.

On financial autonomy,UN’s aviation body,ICAO (International Civil Aviation Organisation) in its study on the structure of CAA had recommended funding it by levying Rs 12 per flyer. The report was evaluated by the ministry and DGCA.

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