India is in 7th position in the global aviation market

Civil aviation is Central subject
Capital intensive industry and works on thin margins

International Civil Aviation Organization (ICAO) study has shown that the output multiplier and employment multiplier of civil aviation are 3.25 and 6.10 respectively.
Currently the penetration of the aviation market in India stands at 7%
FDI 49 percent through Govt route allowed for airlines and 100 percent automatic route for airports

Greenfield airport - Constructing Airport from scratch
Brownfield airport - Expanding existing airports

Air Service Agreements

ASAs Air service agreements through bilateral negotiations to decide on the number of flights that airlines can fly into each other’s countriesRecently, India had inked a memorandum of understanding with Greece for open skies, allowing airlines from Greece to operate unlimited flights to six Indian metropolitan airports
India has an Open Sky agreement with following countries: US, Srilanka, ASEAN, Greece, Spain, Finland, Jamaica, Guyana, Czech Republic

Open Skies Treaty is different from Open Sky agreement

Air Corridors

Air corridors are special corridors that would include regular cargo flights with special clearing and customs facilities to expedite the movement of goods,

Air Transport Bubbles

Also Air Transport Agreements
They are temporary arrangements between two countries aimed at restarting commercial passenger services when regular international flights are suspended as a result of the COVID-19 pandemic.
They are reciprocal in nature, meaning airlines from both countries enjoy similar benefits.

AAI & DGCA

Airport Authority of India AAI	DGCA
PSU: Miniratna category I Sovereign Air traffic controller of India. Total 125 airports and 26 civil enclaves at defence airports. Manages international airports, domestic airports, and custom airports. Maintenance of cargo terminals, passenger terminals, radars, runaways etc. (only civilian)	Directorate General of Civil Aviation it is the regulatory body of civil aviation registers of civil aircrafts gives license to pilots supervises gliding clubs Investigates of minor accidents implements Chicago Convention Drones

SOEC Substantial Ownership and Effective Control clause in Aircraft Rules, 1937

GOI allowed 100% FDI in Aviation Sector but 49 percent for airlines
It means, a foreign carrier can only invest up to 49% to set up a domestic airline in India and the rest, up to 51%, has to come from local or foreign investors including airports and sovereign fund.
As per SOEC clause, 2/3rds of board of directors should be Indi ans

Dornier 228

First Civilian aircraft made in India
Made by HAL
DGCA accorded permission to fly and sell to airlines in India

Note: Rustom is a drone developed by DRDO, Tejas is light combat helicopter , SARAS is light passenger aircraft (obsolete now)

UDAN - Ude Desh Ka Aam Naagrik : Let Common Man fly

Civil Aviation Ministry’s Regional Connectivity Scheme

Objectives: Affordability, regional connectivity, aviation sector growth, tourism

How:

It is a market-based mechanism in which airlines bid for seat subsidies.

Interested airline and helicopter operators can start operations on hitherto un-connected routes by submitting proposals to the Implementing Agency.

The operators could seek a Viability Gap Funding (VGF) apart from getting various concessions.

All such route proposals would then be offered for competitive bidding through a reverse bidding mechanism and the route would be awarded to the participant quoting the lowest VGF per Seat.

The operator submitting the original proposal would have the Right of First Refusal on matching the lowest bid in case his original bid is within 10% of the lowest bid.

The successful bidder would then have exclusive rights to operate the route for a period of three years. Such support would be withdrawn after a three year period, as by that time, the route is expected to become self-sustainable.

The fare for a one hour journey of appx. 500 km on a fixed wing aircraft or for a 30 minute journey on a helicopter would now be capped at Rs. 2,500, with proportionate pricing for routes of different stage lengths / flight duration.

This would be achieved through

(1) a financial stimulus in the form of concessions from Central and State governments and airport operators (no parking fee for aircrafts etc.)

(2) a Viability Gap Funding to the interested airlines to kick-off operations from such airports so that the passenger fares are kept affordable

Features:

It will also allow airlines to transfer its rights or contract to get the subsidy from the government and fly on regional routes to another airline operating a similar type of aircraft

UDAN 3.0

Airplanes for tourist destinations
Seaplanes

UDAN 2.0

This was the first time bids were received from helicopter operators under the scheme.
The Centre has decided not to increase the ₹ 5,000 regional air connectivity levy charged per departure from airlines flying on major routes to fund the UDAN scheme
It would now be partly funded by the dividend that AAI (Airports Authority of India) paid to the Government of India.

Airports