Relevance for UPSC: GS Paper III (Infrastructure, Transport, Economic Regulation)
 Source: Indian Express; Ministry of Civil Aviation; Directorate General of Civil Aviation

Context

The Ministry of Civil Aviation has issued No-Objection Certificates to new regional carriers such as Al Hind Air and FlyExpress, indicating renewed attempts to strengthen regional air connectivity. Commercial operations require an Air Operator Certificate from the Directorate General of Civil Aviation.

Core Issues

  • High operating costs (aviation fuel, aircraft leasing, maintenance).
  • Low and uncertain demand on non-metro routes.
  • Thin profit margins and strong competition from rail and road transport.
  • Market concentration, limiting space for smaller carriers.
UPSC Value Box

Key Concept:
 Regional airlines enhance last-mile connectivity, but face higher financial risk than metro routes.

Policy Link:
 UDAN (Ude Desh ka Aam Nagrik) scheme aims to make regional air travel affordable through viability gap funding.

Institution:
 Directorate General of Civil Aviation – grants Air Operator Certificates and regulates airline safety.

UPSC Prelims Question

Q. In India, the Air Operator Certificate required for starting an airline is issued by:
 (a) Ministry of Civil Aviation
 (b) Airports Authority of India
 (c) Directorate General of Civil Aviation
 (d) NITI Aayog

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