India’s Response to the FAA’s Downgrade

By Rasika Gynedi

Air India is among the carriers affected by the FAA's downgrade. Source: VinTN's flickr photostream, used under a flickr photostream.

Air India is among the carriers affected by the FAA’s downgrade. Source: VinTN’s flickr photostream, used under a flickr photostream.

An important issue for the upcoming government in India is to restore India’s Category 1 rating under the Federal Aviation Administration’s (FAA) International Aviation Safety Assessment (IASA) program. Without a Category 1 rating, Indian airlines will neither be able to increase the number of flights to the United States nor add new routes. More importantly, all code share agreements between U.S. and Indian carriers were suspended and extra checks will be imposed on existing flights to the United States via Air India and Jet Airways.

FAA Rating Implication
Category 1 Compliant with international aviation safety standards
Category 2 Either lacks laws necessary to oversee carriers in accordance with international aviation safety standards or the civil aviation authority is deficient in areas such as technical expertise, trained personnel, record-keeping or inspection procedures.
Source: FAA (2014)

The FAA downgrade is one amongst several issues that have mired U.S. – India relations, such as the Food and Drug Administration (FDA) ban on certain generic drug imports from India and the ongoing dispute over solar cells at the World Trade Organization. Resolving this issue will signal an important effort in moving the U.S. – India bilateral relationship forward.

When did the downgrade take place?

The FAA downgraded India to a Category 2 rating following two consecutive audits in September and December 2013 that yielded 31 deficiencies in the Indian aviation authority’s adherence to international aviation safety standards.

India’s downgrade came at a sensitive time- the aviation sector saw a series of reforms over the past year, one of which was allowing 49 percent Foreign Direct Investment (FDI) into this sector. Other notable reforms included privatizing and expanding major airports, lifting the ban on Airbus A380s and duty concessions on aircraft parts.

What was India’s reaction to the downgrade?

Defending its aviation safety standards, India’s civil aviation ministry released a press statement underscoring the International Civil Aviation Organization’s (ICAO) assessment of India, where the country scored above the global average in all categories but one. India scored below the global average under the sub-category- organization- indicating a lack of trained personnel, a key criticism of the FAA too.

Nonetheless, a senior civil servant attributed FAA’s downgrade to “deteriorating relations” between the United States and India after a diplomatic row in 2013. Further, a senior Air India official blamed “strong commercial interests” driving this move against India, and cited a case filed by a local airline and pilots’ association against Air India over a bank loan from the Export-Import bank in the United States.

Notwithstanding India’s response, the FAA has been heavily consulting with India’s aviation authority – Directorate General of Civil Aviation (DGCA) – and offering recommendations to help India regain its Category 1 rating.

What steps has India taken so far?

Of the 31 findings by the FAA, the DGCA resolved 29 of them. Two additional issues remain- a lack of full-time operations inspectors and inadequate training of airworthiness officers on planes owned by non-scheduled operators such as private jets and helicopters.

DGCA Recruitment of Grade “A” officers (including inspectors) International Passenger Traffic (in millions)
2010 0 2009-10 34
2011 16 2010-11 38
2012 44 2011-12 41
2013 7 2012-13 43
Source: Airports Authority of India, Centre for Asia Pacific Aviation (2014)

Addressing the first issue, the DGCA appointed 20 operations inspectors on a contract basis, but the FAA maintained that on-contract hiring did not ensure a continuity of necessary operations. Consequently, India’s government approved the hiring of 75 operations inspectors, of which 29 have been recruited.

Regarding the training of airworthiness officers, while the DGCA has commenced the process, an official statement regarding the completion of the statement is yet to be released.

Lastly, India is looking to appoint a consulting firm run by former FAA officials to help restore its safety ranking.

Which other countries have been downgraded in the recent past? How long did it take for them to make it back on the Category 1 list?

Over the last 5 years, the FAA downgraded civil aviation authorities in non-NATO allies Israel and Philippines, as well as in neighboring Mexico. After adhering to an FAA action plan, all three of them were upgraded back to Category 1 within different time frames.

Country Downgrade to Category 2 Upgrade to Category 1
Mexico Jul-10 Dec-10
Israel Dec-08 Nov-12
Philippines Dec-08 Apr-14
Source: FAA (2014)

 

What might happen next in India’s case?

There is a possibility of a contagion effect, where aviation authorities in other countries could follow suit in the FAA’s footsteps and downgrade Indian carriers. For example, the civil aviation authority of Singapore has stepped up inspections on Indian carriers. The European Commission stated that the FAA move was of “significant interest” to the European Union. Japan’s request for an audit was denied in September 2013, but under the current circumstances such a request would be difficult to turn down.

Any chance of a prompt restoration of India’s safety rating will require a timely and coordinated effort by the DGCA to resolve outstanding issues raised by the FAA. According to a senior aviation ministry official, India will most likely request for an audit in June after meeting all FAA requirements.

Ms. Rasika Gynedi is a researcher with the Wadhwani Chair in US-India Policy Studies at CSIS.

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