Legacy of the Aircraft Act, 1934
The Aircraft Act of 1934 was designed by the British to control airspace, not promote aviation growth.
It focused on military and administrative purposes, limiting the development of commercial aviation.
Despite India’s growing aviation sector, the outdated law remained, causing bureaucratic delays and inefficiencies.
Introduction of Bharatiya Vayuyan Adhiniyam, 2024
The new law replaces the 1934 Act, aiming to modernize aviation with streamlined licensing and better air traffic management.
It enhances passenger rights, providing better compensation for flight delays and cancellations.
However, it doesn’t address the critical issue of arbitration for resolving aviation disputes.
Arbitration Gap and Global Competition
India’s Arbitration and Conciliation Act, 1996, lacks provisions for specialized aviation disputes.
Without dedicated aviation arbitration mechanisms, disputes are often shifted to global hubs like Singapore, London, and Paris.
This limits India’s ability to attract international aviation businesses and impacts its global legal standing.
Path Forward for Aviation Arbitration in India
India needs to establish specialized aviation arbitration institutions with expert panels.
Lessons can be learned from countries like Singapore and the UK, known for robust aviation arbitration systems.
Key reforms include ensuring neutrality in arbitrator appointments, reducing judicial interference, and building institutional credibility.
Without these reforms, India risks losing revenue, foreign investments, and its competitive edge in the global aviation sector.
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