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2ND ASIA PACIFIC CONFERENCE ON CIVIL AVIATION

14th September, 2024 International Relations

2ND ASIA PACIFIC CONFERENCE ON CIVIL AVIATION

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Picture Courtesy: https://www.hindustantimes.com/india-news/air-travel-in-india-became-inclusive-in-10-yrs-modi-at-civil-aviation-meet-101726171433007.html

Context:

The 2nd Asia-Pacific Ministerial Conference on Civil Aviation concluded with the approval of the Delhi Declaration.

About the 2nd Asia-Pacific Ministerial Conference on Civil Aviation

  • The Ministry of Civil Aviation in partnership with the International Civil Aviation Organisation (ICAO) has organized the conference at Bharat Mandapam in New Delhi.
  • It brought together ministers, policymakers and key stakeholders from 29 countries.
  • They stressed the importance of maintaining high safety and security standards in the rapidly developing Asia-Pacific aviation sector.
  • The conference unanimously adopted the ‘Delhi Declaration’ to promote sustainable and inclusive growth in the civil aviation sector.
  • The main objective of the Delhi Declaration is to strengthen regional cooperation to overcome aviation challenges and guarantee durable, sustainable expansion.

International Civil Aviation Organisation (ICAO)

●It is a United Nations agency that coordinates international air navigation principles and techniques, promoting safe and orderly growth in international air transport.

●Its headquarters are in Montreal, Canada.

●The ICAO Council adopts standards and recommended practices for air navigation, infrastructure, flight inspection, and border-crossing procedures.

●It defines air accident investigation protocols for countries signatory to the Convention on International Civil Aviation.

●The Air Navigation Commission (ANC) is the technical body within ICAO.

Significance of the ‘Delhi Declaration’ on the Civil Aviation Sector

  • It provides the framework for increased collaboration among Asia-Pacific nations to improve aviation infrastructure, promote tourism, and increase connectivity.
  • It promotes green aviation efforts to reduce carbon footprint, balance expansion with environmental responsibility, and ensure the aviation industry's long-term survival.
  • It emphasises the need for improved safety protocols and regional cooperation to guarantee that all countries comply with the highest aviation safety standards.
  • The International Buddhist Circuit aims to increase regional connectivity, promote economic growth, and strengthen infrastructure connectivity between nations.

 Liaison office for Pacific Small Island Developing States

●One of the conference's main outcomes was the ICAO's presentation on establishing a liaison office for Pacific Small Island Developing States.

●These countries face unique aviation issues because of their geographical isolation, limited resources, and susceptibility to climate change.

●The creation of this agency intends to assist these countries in eliminating these barriers and ensuring that the advantages of aviation are distributed evenly.

Highlights of the Prime Minister's Speech at the 2nd Asia-Pacific Ministerial Conference on Civil Aviation

  • He emphasised India's commitment to make aviation more inclusive.
      • While women account for only approximately 5% of pilots globally, the figure is three times higher in India, at 15%.
  • He highlighted that India has progressed from being aviation-exclusive—where only a select elite could afford air travel—to aviation-inclusive, where a far more significant segment of society now flies.
      • The Ude Desh ka Aam Naagrik (UDAN) regional connectivity scheme shows this inclusivity.
      • UDAN has transported more than 14 million passengers, many of whom are flying for the first time.
      • The scheme makes air travel more accessible and affordable, providing opportunities for people from all backgrounds to travel.
  • He proposed the creation of an International Buddhist Circuit to connect major Buddhist pilgrimage sites throughout Asia.
      • Linking these holy places would benefit tourism and deepen cultural connections across Asian countries with a Buddhist majority.
      • India has effectively marketed religious tourism with projects like the Ramayana Circuit and the Krishna Circuit.
      • The proposed International Buddhist Circuit might follow a similar format, boosting civil aviation and the hospitality business throughout Asia.
  • He highlighted the potential for affordable air taxis.
      • Air taxis could alleviate urban traffic congestion and offer a futuristic answer to transportation problems.
  • He addressed the significance of drones in the agriculture sector.
      • Drones are becoming increasingly vital in India's agricultural industry.
      • Drone Didi initiative is establishing a vast pool of skilled pilots for jobs such as crop monitoring, pesticide spraying, and transporting critical supplies to remote locations.

About the Indian Aviation Sector

  • In 1911, the first commercial flight in India took off from Allahabad to Naini.
  • After independence, the government nationalised the airline business in 1953, combining private airlines into two state-owned carriers:
      • Air India is for international flights
      • Indian Airlines is for domestic flights.
      • This established the state's dominating position in India's aviation sector.
  • Liberalisation in the 1990s opened the door for private companies, allowing new domestic airlines to compete with government-owned carriers and increase access to air travel.
  • The Indian aviation sector is regulated by the Directorate General of Civil Aviation (DGCA) founded in 1931, and the Airports Authority of India (AAI) established in 1995.
      • The DGCA oversees safety, licensing, and operational requirements for Indian airlines and airports.
      • The AAI supervises civil aviation infrastructure and airport operations.
  • According to the International Air Transport Association (IATA), India is the world's third-largest domestic aviation market and will overtake China and the United States by 2030.
  • The aviation sector accounts for around 5% of India's GDP and generates significant direct and indirect jobs for around 4 million people.
  • The Ministry of Civil Aviation received an allocation of ₹2,357 crore in the 2024-25 Budget.
  • India allows 100% Foreign Direct Investment (FDI) in the Maintenance, Repair, and Overhaul (MRO) sector.
  • The National Civil Aviation Policy (NCAP 2016) serves as the sector's governing framework, emphasizing the importance of building an enabling environment for airlines, airports, and other stakeholders.
  • The UDAN scheme was launched in 2017 to make air travel more affordable for the general public by offering financial incentives and subsidies to airlines.

Challenges

  • Indian airlines are facing high operating costs caused by fluctuating fuel prices, costly lease arrangements, and maintenance expenditures.
      • Aviation turbine fuel (ATF) prices in India are among the highest in the world making for 35-40% of an airline’s operating costs.
      • High airport fees and user development charges (UDC) in large hubs such as Delhi and Mumbai raise operational costs.
      • Airlines face additional financial burdens due to high fuel and other service taxes, as well as difficult regulatory procedures.
  • Major airports such as Delhi and Mumbai are already running at nearly full capacity.
      • To meet the expected increase in passenger traffic considerable investment is required in expanding airport capacity, modernising facilities, and building smaller regional airports.

Way Forward

  • Bringing Aviation turbine fuel (ATF) under the Goods and Services Tax (GST) could reduce fuel costs that will make Indian airlines more competitive.
  • Rationalising airport taxes and user charges will cut operational expenses and increase airline profitability.
  • The government should accelerate the development of new airports in tier 2 and tier 3 cities to alleviate congestion at major hubs.
  • The government should set up more pilot training institutes and incentivise private companies to create world-class facilities.
  • A single-window system for all regulatory clearances can eliminate bureaucratic delays and enable airlines and airport operators to complete projects more quickly.

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Source:

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Wikipedia

PRACTICE QUESTION

Q.Consider the following statements in the context of the International Civil Aviation Organisation (ICAO):

1. It is a United Nations agency that promotes growth in international air transport.

2. Its headquarters are in New York, USA.

3. It defines air accident investigation protocols for countries signatory to the Convention on International Civil Aviation.

Which of the above statements are correct?

A) 1 and 2 only

B) 2 and 3 only

C) 1 and 3 only

D) 1, 2 and 3

Answer: C

Explanation:

Statement 1 is correct:

The International Civil Aviation Organisation (ICAO) is a United Nations body that promotes the safe and orderly growth of international air transport.

Statement 2 is incorrect:

Its headquarters are in Montreal, Quebec, Canada.

Statement 3 is correct:

It establishes air accident investigation protocols for countries that have signed the International Civil Aviation Convention.