BAOA: A Journey of Transformation

BAOA IN INDIA

Business Aircraft Operators Association (BAOA) is a non-profit organisation incorporated on March 31, 2011, with the primary aim of actively promoting the growth of business and general aviation in India, whilst achieving the highest levels of safety, efficiency and reliability, through close cooperation amongst its members, and continuous proactive interaction with the government and regulatory authorities. BAOA was formed after merging two other associations which were representing the industry, but not in a focused way. The industry came together to form a new body, and BAOA was created. At inception, it had about 27 members, which included mainly Indian operators. Today, BAOA has about 80 members, which include all major operators, the support services, and the OEMs. BAOA has come a long way to become a forum to determine best practices and promote issues relevant to business and general aviation.

One of the immediate aims when we were formed was to be recognised as the principal point of contact for all stake holders for representation of all matters pertaining to business aviation in the country. As an exclusive industry body for the Business and General Aviation fraternity in India, BAOA is today a part of all major inter-actions with government bodies Ministry of Civil Aviation (MoCA), Directorate General of Civil Aviation (DGCA) and other ministries/organisations to represent the view point of the business and general aviation community. Being the nodal body from India, it regularly interacts with global organisations like International Civil Aviation Organisation (ICAO) and International Business Aviation Council (IBAC) for developing better understanding of the efforts required for safe, secure and efficient growth of general and business aviation.

Business Aircraft Operators Association has achieved significant traction over the last six years in bringing about an environmental change, which resonates from an attitudinal shift amongst the regulator, authorities and other stakeholders towards the industry

With dedicated focus on key issues, the committees were formed to look into legal/taxation and rules/regulation issues concerning business aviation activities in India. The legal/taxation committee complied and collated various issues concerning usage charges and tariff structure, while the committee on rules/regulation elicited member’s views on regulatory issues affecting business aviation.

FIGHTING THE PERCEPTION BATTLE

The BizAv industry has had a momentous transformation over the past decade in India, and now is at the cusp of maturation. This, however; remains a long term process involving a consistent effort through all spheres and avenues, requiring unvarying activism, flow of information and knowledge. Perception takes a long time to change, and we are trying our level best to fight it. Even in the US, where business aviation is decades old, the perception battle continues, though to a lesser extent. To address this issue, BAOA initiated the first ever study to document the growth and contribution of the business aviation industry towards nation building, and growth of the economy. This was a stellar effort, with no real data available previously. The report was prepared by BAOA, along with our knowledge partners, Martin Consulting, and we can proudly say that it has been well received by the concerned bodies and also globally. We hope this will help to present our case for perceptions in a better light to the GOI. With these compelling thoughts in the backdrop, BAOA conceptualised a platform BizAVIndia Conference that empowers and facilitates a binal flow of knowledge and ideas with focus on deliberating key issues and opportunities in the business and general aviation in India. The conclave is a daylong event, with specific sessions addressed and moderated by industry experts, think tanks and senior bureaucrats. Now in its fourth edition, the BizAVIndia platform is recognised as the most sought after knowledge building platform for thoughtful deliberation and discussion on pressing industry issues, collaboration on international best practices, and networking opportunities.

Underscoring the importance of safety in operations, BAOA organises Safety Seminars across cities dedicated to the cause of enhancing aviation safety awareness for business aviation (NSOP/general aviation) in India.

A JOURNEY OF TRANSFORMATION

Business Aircraft Operators Association has achieved significant traction over the last six years in bringing about an environmental change, which resonates from an attitudinal shift amongst the regulator, authorities and other stakeholders towards the industry. This, however; remains a long term process involving a consistent effort through all spheres and avenues, requiring unvarying activism, flow of information and knowledge.

The biggest achievement has been to give the industry a unified voice to represent all industry matters.

The below case on GA draft policy by DIAL explains this better. DIAL decided to issue a draft GA policy in August last year. BAOA opposed the policy on the grounds that the policy was unfair to NSOP/GA operators and completely unjustified. Later, the issue was taken up with MoCA and with representation to PMO Grievance Cell on behalf of the small aircraft industry. Finally, intervention from the regulator (AERA) was sought to stop DIAL from going ahead with illegal actions in terms of AERA Act. As expected, the draft policy was not implemented. It was decided that a collaborative approach would be followed with the help of all the stakeholders to resolve issues of NSOP/GA parking and allotment of slots.

One of the top priority issues identified in the last action plan was to ensure waiving off of YA number by DGCA for Indian registered aircraft, which was taken up aggressively with MoCA and DGCA. It has been confirmed by MoCA that YA Number requirement for Indian registered aircraft would soon be waived off. It was duly clarified to MoCA, during BAOA’s presentation on our issues, that we are not in favour of any relaxation, in existing restrictions, on YA for foreign-registered aircraft and, we have only been aiming to create ‘ease of doing business’ for Indian industry.

Our challenge, at the moment, is to get more predictability in rulemaking as we still get some surprises from the regulators which becomes a huge issue for day to day operations. We also want the GOI to help us to get more access to airports, especially airports such as Mumbai and Delhi, which are now being operated by private operators. They must understand the relevance of business aviation in the overall growth of the aviation industry in the country. No country can hope to become the third largest aviation industry in the world, without the simultaneous growth of the business aviation industry. The growth in aviation industry in US, China and Brazil is for everyone to see. We are also yet to see a significant growth in the helicopter industry. In 2011, India had 300 civil helicopters with growth projected to 600 helicopters by 2016. Today, we have only 285 helicopters. In a country which has large inaccessible terrain, poor road infrastructure and limited number of operational airports, it is unimaginable that the helicopter industry has not boomed.

ROADMAP AHEAD

Having said this, we have started to see ripples of change, which is reflected in our interaction and engagement with the ministry, regulator and other key stakeholders.

General and business aviation is being taken up for discussion at roundtables and events of significance. BAOA has constantly been supporting industry associations such as FICCI, CII, PHD Chambers and Indo American Chamber of Commerce through strategic policy inputs on general aviation. BAOA is a key contributor to FICCI’s recently created task force on general aviation, headed by B.P. Sharma, CMD, Pawan Hans Limited.

With the remote and interior parts of the country opening up for economic activity, and the limited air connectivity, the only way for investors to access these areas is by business aviation aircraft and helicopters

MoCA and Ministry of Tourism plan to synergise and reinforce stronger collaboration, BAOA is looked up to as a significant participant in the discussions to lead the roadmap of the general aviation sector.

BAOA remains deeply committed to the cause of promoting ease of doing business and represent voices to address any infrastructure and taxation related concerns that impede the growth of Business and General Aviation in India. Our focus in the next few years will be to ensure redressal of following specific issues to let this vital industry grow and be ready to contribute to faster growth of the nation.

SECURITY CLEARANCE FOR ALL DIRECT OR OF THE COMPANY FROM MHA

This remains a big concern for all new operators and the ones whose ‘AOC’ is due for renewal. The rationale and time-frame needs to be reviewed in contemporary environment. Issue of passport takes three days today, but Director’s security clearance takes three to four months and in some cases even up to one year. The whole process needs to be made time-bound.

ISSUE OF NOC FOR AIRCRAFT IMPORT

The process of issuing NOC and the allied requirements need to be rationalised. This process at MoCA/DGCA level takes three to four month, if not more. Alongside, the need to seek parking permission from air-port operator further delays induction of aircraft. Parking permission is not required to be insisted upon for small aircraft of <20 seating capacity. These small aircraft can be parked at any airport based on real-time availability of parking and, DGCA’s approved SOPs at different airports to ensure no congestion is caused and safety not compromised.

ISSUE OF FATA

This is another cumbersome process when a new type aircraft is introduced in India. This again should not take more than seven days and initial FATA validity of foreign pilot should be one year. At present, it is a three step process including passing of air regulation examination and security clearance. There is a need to simplify the process, as it is practised in US and Europe, to save time and money for operators who are required to pay heavily due to time taken to get Indian pilots reach level of proficiency on the new aircraft.

AOR AT DEFENCE AIRFIELDS

Many defence airfields are regularly used for civil flights, where permission, in the form of AOR is required for NSOP/GA air-craft. There is need to review this very requirement of AOR, as well as the existing time-frame of 30 days advance notice for restricted defence airfields.

E-GOVERNANCE FOR ALL CLEARANCE RELATED TO BA/GA

In view of the e-GCA programme, aimed at online regulatory clearances, getting unduly delayed, e-filing should be immediately started in DGCA to help monitor movement of files. This would provide intermediate respite to NSOP/GA operator before e-GCA finally comes through.

PROPORTIONATE REGULATIONS

DGCA needs to diligently work on ensuring all modes of public air transportation like airlines, SCA, NSOP have common but differentiated (based on AUW, Size, Type of Operation, Pax Capacity, Area of Operation) financial and safety regulations to facilitate efficient operations and maximising use of costly aircraft inventory.

RELAXING RBI NORM INVOLVING NSOP/GA AIRCRAFT IMPORT

While RBI has eased certain norms for transfer of funds for aircraft import in the recent past, there is still scope to ensure that this process is simplified further to allow payment of advance. The system of issuing Letter of Type Acceptance (LOTA) by DGCA, before remittance of advance for purchase of new ‘first of type’ aircraft model, needs to be immediately reviewed. LOTA should be mandated while granting final approval to import aircraft in the country instead of being asked at the time of applying for initial approval for import/acquisition of the aircraft.

It is undisputable that there is a huge need for business aviation in this country. With the remote and interior parts of the country opening up for economic activity, and the limited air connectivity, the only way for investors to access these areas is by business aviation aircraft and helicopters. The possibilities are endless, and we are confident to secure business and general aviation of its rightful place in rapidly growing Indian economy.