Context: Recently, the Lok Sabha has passed the Aircraft (Amendment) Bill, 2020 which seeks to amend the Aircraft Act, 1934.
About Aircraft (Amendment) Bill,2020

• It will provide statutory status to regulatory institutions like the Directorate General of Civil Aviation (DGCA), the Bureau of Civil Aviation Security (BCAS) and the Aircraft Accident Investigation Bureau (AAIB).
• It regulates the manufacture, possession, use, operation, sale, import and export of civil aircrafts and licensing of aerodromes.
• The statutory status to these regulatory institutions would improve India’s aviation safety ranking as suggested by the International Civil Aviation Organization (ICAO).
• It proposes to increase the fine amount for violations of rules from Rs10 lakhs to Rs 1 crore for aviation industry players.
• It may cancel the licences, certificates or approvals granted to a person under the Act if the person contravenes any provision of the Act.
• It exempted aircrafts belonging to the naval, military, or air forces of the Union. It expands this exemption to include aircrafts belonging to any other armed forces other than these three.
• It also enlarges the scope of the Act to include regulation of all areas of air navigation.
• The proposed amendments would fulfill the safety requirements of International Civil Aviation Organisation (ICAO). 

This will also enable the three regulatory bodies in the civil aviation sector in India Directorate General of Civil Aviation (DGCA), Bureau of Civil Aviation Security (BCAS) and Aircraft Accident Investigation Bureau (AAIB) to become more effective.

• DGCA will carry out oversight and regulatory functions with respect to matters under the Bill.
• BCAS carries out regulatory oversight functions related to civil aviation security.
• AAIB carries out investigations related to aircraft accidents and incidents.

About Challenges

• The civil aviation sector had been deregulated with little role for the government to set air fare.
• There has been a drop in demand and airline companies are under stress due to the COVID-19 outbreak.
• Air India is having huge losses (Rs26 crore daily) due to its disinvestment and it is likely to get worse in the wake of the pandemic.
• The aviation sector faces the shortage of Air-Traffic Controllers (ATCs).
• The cases of “near miss” in the skies have increased.