In the wake of the recent Air India crash, the Government of India has launched a wide-ranging set of reforms to strengthen the aviation sector, improve passenger safety, and modernize the country’s air travel infrastructure. These changes, many of which are already in effect or will be soon, impact airlines, passengers, investors, and anyone involved in the aviation industry. Here’s a detailed update on what has changed, who is affected, the effective dates, required actions, and what these reforms mean for pending and future applications.
Summary of What Changed
The Air India crash served as a turning point for India’s aviation sector. In response, the government introduced the Bharatiya Vayuyan Adhiniyam, 2024, a new law that replaced the nearly century-old Aircraft Act, 1934. This law, along with several other reforms, aims to make air travel in India safer, more efficient, and more passenger-friendly. The changes cover everything from safety oversight and accident investigation to airport expansion, digital services, and environmental sustainability. The government’s actions are designed to address both immediate concerns raised by the crash and long-standing issues in the aviation sector.
Key Legislative Reform: Bharatiya Vayuyan Adhiniyam, 2024
The most important change is the introduction of the Bharatiya Vayuyan Adhiniyam, 2024, which came into force on January 1, 2025. This law is the biggest update to Indian aviation rules since independence. It was passed by Parliament in August and December 2024 and officially notified on December 11, 2024.
Bharatiya Vayuyan Adhiniyam passed by Parliament
Bharatiya Vayuyan Adhiniyam officially notified
Bharatiya Vayuyan Adhiniyam came into force
Most changes in aviation sector effective
GST reform took effect
Who is Affected:
– Airlines and aviation companies
– Passengers
– Aircraft manufacturers and maintenance providers
– Investors in the aviation sector
Key Provisions:
– Expanded Regulatory Powers: The Directorate General of Civil Aviation (DGCA), Bureau of Civil Aviation Security (BCAS), and Aircraft Accidents Investigation Bureau (AAIB) now have more authority to enforce safety, security, and accident investigation rules.
– Modernization: The law covers all aspects of aircraft design, manufacturing, maintenance, and operation. It brings Indian rules in line with international standards set by the International Civil Aviation Organization (ICAO).
– Consumer Protection: Passengers now have access to a time-bound, online system for filing complaints. There is also a clear process for appealing regulatory decisions.
– Sustainability: The law requires airlines and airports to adopt green technologies and work towards reducing carbon emissions.
– Ease of Doing Business: Licensing processes have been simplified, unnecessary steps removed, and local manufacturing encouraged under the Make in India and Atmanirbhar Bharat programs.
Required Actions:
– Airlines and aviation companies must update their compliance systems to meet the new safety and reporting standards.
– Passengers should use the new online grievance system for any complaints or issues.
– Investors and manufacturers should review the new rules for licensing and local production.
Implications for Pending Applications:
– Applications for licenses, approvals, or certifications submitted before January 1, 2025, will be reviewed under the new rules. Applicants may need to provide additional information or meet updated standards.
Safety and Accident Investigation Reforms
After the Air India crash, the government strengthened the role of the Aircraft Accidents Investigation Bureau (AAIB). The AAIB now has more independence and must follow strict protocols for investigating accidents. Findings must be reported quickly and shared with the public.
Key Changes:
– Transparent Reporting: Accident reports must be made public in a timely manner.
– Digitalization: The eGCA platform now handles nearly 300 aviation services online, making regulatory compliance easier and more transparent.
– Expert Oversight: The Parliamentary Standing Committee recommended using artificial intelligence (AI) to monitor airfares and suggested a new “Airfare Vigil” app to help passengers report sudden fare increases.
Who is Affected:
– Airlines, which must cooperate fully with AAIB investigations and digital reporting.
– Passengers, who benefit from greater transparency and safety oversight.
Effective Dates:
– Most of these changes are already in effect as of March 2025.
Required Actions:
– Airlines must ensure all accident data is reported digitally and cooperate with AAIB investigations.
– Passengers can expect more information about accident investigations and outcomes.
Infrastructure Expansion and Modernization
India’s aviation infrastructure is growing rapidly. The number of operational airports has more than doubled in the last decade, and the government plans to reach 200 airports by the end of 2025.
Key Updates:
– Airport Growth: As of March 2025, India has 160 operational airports, up from 74 in 2014.
– Major Investments: Over ₹92,000 crore is being spent on new and upgraded airports, including major projects in Varanasi, Bihta (Patna), and Bagdogra.
– Regional Connectivity: The UDAN scheme has added 625 new air routes, connecting 88 previously unserved or underserved airports and helping over 15 million passengers.
Who is Affected:
– Airlines, which now have more routes and airports to operate from.
– Passengers, who have more travel options and better connectivity, especially in smaller cities and towns.
Effective Dates:
– Most new airports and routes are operational or will be by the end of 2025.
Required Actions:
– Airlines should review new route opportunities and airport facilities.
– Passengers should check for new flight options in their region.
MRO (Maintenance, Repair, and Overhaul) and Tax Reforms
To make aircraft maintenance more affordable and attract global business, the government has introduced several tax and investment reforms.
Key Changes:
– GST Reform: Since July 2024, a uniform 5% Goods and Services Tax (GST) applies to all aircraft and engine parts, down from a previous range of 5–28%.
– Customs and FDI: Customs duties on tools and toolkits for maintenance have been removed. Foreign investors can now own 100% of MRO companies through the automatic route.
– MRO Growth: The MRO industry is expected to double in size, reaching $4 billion by 2030.
Who is Affected:
– MRO companies, which benefit from lower taxes and easier investment rules.
– Airlines, which can get maintenance done more cheaply and quickly.
– Investors, who have more opportunities in the aviation sector.
Effective Dates:
– GST and customs changes took effect in July 2024.
– FDI rules are already in place.
Required Actions:
– MRO providers should update their tax and compliance systems.
– Airlines should review new MRO options for cost savings.
Aircraft Leasing, Financing, and Market Structure
The government is making it easier and cheaper for airlines to lease and finance aircraft, which is important for fleet expansion and modernization.
Key Updates:
– Cape Town Convention: The Protection and Enforcement of Interests in Aircraft Objects Bill, 2024, was approved in early 2025. This will help India join the Cape Town Convention, lowering aircraft leasing costs by 8–10%.
– GIFT City: Gujarat’s GIFT City has become a major aircraft leasing hub, with 200 aircraft assets leased as of March 2025.
– Market Consolidation: The Tata Group has merged Air India with Vistara and Air India Express with AIX Connect, creating two large carriers. IndiGo remains the largest airline with a 60% market share.
Who is Affected:
– Airlines, which can lease planes at lower costs.
– Investors and leasing companies, who have more business opportunities.
– Passengers, who may see more modern aircraft and better services.
Effective Dates:
– The new leasing rules and GIFT City operations are effective as of early 2025.
Required Actions:
– Airlines should explore new leasing options and financing structures.
– Leasing companies should review the new legal protections and incentives.
Technology, Digitalization, and Passenger Experience
The government is using technology to make air travel smoother and more secure.
Key Changes:
– Digi Yatra: Over 52 million passengers have used the Digi Yatra facial recognition system for paperless travel.
– Security: Biometric Airport Entry Passes (AEP) and the e-BCAS system have improved airport security.
– Passenger Services: Baggage turnaround times at major airports are now under 30 minutes. UDAN Yatri Cafés offer affordable meals at airports.
Who is Affected:
– Passengers, who benefit from faster, easier, and safer travel.
– Airlines and airport operators, who must implement new digital systems.
Effective Dates:
– Most digital and security upgrades are already in place as of March 2025.
Required Actions:
– Passengers should register for Digi Yatra and use digital services for a smoother experience.
– Airlines and airports must ensure all digital systems are fully operational.
Sustainability and Social Inclusion
The new law and government policies focus on making aviation greener and more inclusive.
Key Updates:
– Green Aviation: Airlines and airports must adopt green technologies and work to reduce carbon emissions. There is a recommendation for an Aviation Carbon Exchange Program.
– Women in Aviation: India leads the world with 15% women pilots and aims for a 25% women workforce in aviation by the end of 2025.
– Drone Ecosystem: Over 32,000 drones are registered, and 26,000 remote pilot certificates have been issued, with strong policy support for drone operations.
Who is Affected:
– Airlines and airports, which must meet new environmental standards.
– Women and underrepresented groups, who have more opportunities in aviation.
– Drone operators, who benefit from clear rules and support.
Effective Dates:
– Most sustainability and inclusion measures are already in effect or will be by the end of 2025.
Required Actions:
– Airlines and airports should review and update their environmental policies.
– Women and other job seekers should explore new opportunities in the aviation sector.
– Drone operators must ensure they are registered and certified.
Implications for Pending Applications
If you have a pending application for a license, certification, or approval in the aviation sector, expect it to be reviewed under the new rules. You may be asked to provide updated information or meet new standards, especially regarding safety, digital compliance, or environmental impact. Airlines and MRO providers should check for any changes in documentation or reporting requirements.
Practical Guidance and Next Steps
- For Airlines: Review all compliance systems to align with the Bharatiya Vayuyan Adhiniyam, 2024. Explore new leasing and MRO options to reduce costs. Take advantage of new airport routes and digital services.
- For Passengers: Use the new online grievance system for complaints. Register for Digi Yatra for faster airport processing. Look for new flight options and improved services at airports.
- For Investors: Study the new tax incentives, FDI rules, and legal protections under the Cape Town Convention. Consider opportunities in airport infrastructure, MRO, and aircraft leasing.
- For Job Seekers: Explore new roles in aviation, especially for women and drone operators.
Official Resources and Contacts
For more details on the new rules, licensing, and compliance, visit the Directorate General of Civil Aviation (DGCA) website. This is the official source for all regulatory updates, forms, and guidance related to the aviation sector.
Recent Official Statements
Union Minister of Civil Aviation, Kinjarapu Rammohan Naidu, has stressed the government’s commitment to safety, consumer protection, and making India a global leader in aviation. The Parliamentary Standing Committee has called for more use of technology, better passenger rights, and stronger environmental policies.
Looking Ahead
The government’s Vision 2040 roadmap aims for 350–400 airports by 2047, with ongoing focus on sustainability, digitalization, and global competitiveness. According to analysis by VisaVerge.com, these reforms are expected to make India’s aviation sector safer, more efficient, and more attractive for both travelers and investors.
Conclusion
The Air India crash was a tragic event, but it has led to the most sweeping changes in India’s aviation history. The new Bharatiya Vayuyan Adhiniyam, 2024, along with reforms in safety, infrastructure, digital services, and sustainability, marks a new era for the aviation sector. Airlines, passengers, investors, and job seekers all stand to benefit from these changes. For anyone with pending applications or plans to enter the aviation sector, now is the time to review the new rules, update your compliance systems, and take advantage of the many new opportunities these reforms have created.
Learn Today
Bharatiya Vayuyan Adhiniyam → India’s 2024 aviation law replacing the Aircraft Act, setting modern safety and operational standards.
DGCA → Directorate General of Civil Aviation overseeing aviation safety, security, and regulatory compliance in India.
AAIB → Aircraft Accidents Investigation Bureau responsible for independent accident investigations and transparent reporting.
MRO → Maintenance, Repair, and Overhaul services ensuring aircraft safety and operational readiness in aviation.
Cape Town Convention → International treaty facilitating aircraft leasing and financing by protecting creditors’ rights in aircraft objects.
This Article in a Nutshell
Following the Air India crash, India launched the Bharatiya Vayuyan Adhiniyam, 2024, for safer, greener aviation. Reforms modernize laws, expand airports to 200, reduce taxes on maintenance, and improve digital passenger services, shaping a stronger, sustainable future for Indian air travel and aviation industry stakeholders.
— By VisaVerge.com
