UNIVERSITY OF TOMORROW

Aviation Law and

Insurance
 Unit 1

Introduction to
Aviation Law

Learning Objectives Introduction

By the end of this unit, you will be The aviation industry demonstrates that with determination,
able to: we can accomplish anything. In flying, mistakes are

● Describe Air Laws unavoidable, especially while one is still picking up new
skills. The trick is to avoid the error that will result in your
● Explain Main Organizations In
death. A State operate more efficiently when:
Aviation

● Discuss Air Sovereignty

● Know Extension of Airspace & The laws are

It has few laws
Problems of National Jurisdictions observed rigoursly
As they say, "necessity is the mother of invention." ● Airline Labor Law
The need for aviation law led to its creation.
● Aviation Litigation, and

Air Laws ● Updates on Aviation Insurance

The growing globalization and expanding scope Law of Admiralty

of aviation activities have spurred the need for
The aviation sector is susceptible to a number
aviation rules. Aircraft operating in international
of dangers and risks, particularly when it comes
skies are subject to a wide range of international
to the technical operations of an aircraft and the
aviation law because of the special characteristics
associated concerns. Aviation insurance is a type
of air travel. Aviation Law has vast areas of interest
of specialist insurance that was created to cover
however they are not limited to
various aviation hazards as well as the particular
● FAA Enforcement Actions operations of an aircraft. As a result of its
● NTSB/Department of Justice—Updates distinctive clauses, terms, and limits, aviation
insurance differs from other forms of transportation
● International Treaties & Conventions
insurance.
● Airport Operations & Land Use

● Registration, recording, and security interests; A variety of bespoke choices are offered by various
aviation law aviation insurance policies to meet the various
needs of each customer. Before selecting a plan
● Drones Regulation
to purchase, it is crucial to comprehend the types
● Space Law
of coverage offered, which are quite distinctive to
● Air Taxi Operations each plan. A customer frequently believes that a

2 Introduction to Aviation Law

certain coverage is included in their plan, only to
learn recently that there was no coverage for that
specific kind of accident. You must speak with a
knowledgeable aviation insurance professional to
learn how to prevent falling into this position. This
insurance expert will assist you in identifying and
differentiating the many types of aviation insurance
coverage as well as answering any questions you
may have.

Only recently has the idea of aircraft insurance

gained traction. There has been a large increase
in the number of claims as a result of a string
of aircraft mishaps, including the inexplicable
disappearance of Malaysia Airlines with more
than 200 passengers on board. Flying is viewed
as an extremely risky activity as aircraft tragedies
continue to occur. Aviation insurance is necessary
in part because of the dread of any accident.

3 Introduction to Aviation Law

4 Introduction to Aviation Law
5 Introduction to Aviation Law
6 Introduction to Aviation Law
7 Introduction to Aviation Law
8 Introduction to Aviation Law
9 Introduction to Aviation Law
10 Introduction to Aviation Law
 Unit 2

Federal and State

Regulatory Functions

Introduction
2
3
4
5
6
7
8
9
10
 Unit 3

Chicago Convention and the

Fundamental Principles

Learning Objectives Introduction

By the end of this unit, you will be
able to:

● Describe Chicago Convention and

the Fundamental Principles

● Explain Fundamental Principles of

the Chicago Convention

● Summarize National Sovereignty

over Airspace & Aircraft Nationality

● Discuss Different Types of Duties

Imposed upon Aircraft Operators

● Know Rights of the Flights

2
3
4
5
6
7
 Unit 4

International Accident
Litigation (Warsaw and
Montreal Conventions)
Learning Objectives Introduction
By the end of this unit, you will be
able to:

● Describe The Warsaw Convention

● Discuss The Montreal Convention

2
3
4
5
6
7
8
9
 Unit 5

Product Liability in Aviation

Learning Objectives Introduction

By the end of this unit, you will be Today's court cases are a direct reflection of the society
able to: that gave rise to the disagreements. General aviation covers

● Describe Product Liability a wide range of goods, including commercial and private
flights as well as surveillance gear. The majority of them are
● Discuss Product Liability in Aviation
little standalone gadgets that can quickly give pilots access
● Explain The ICAO’s Strategic Plan to a less expensive Flight Management System (FMS).

Because it transports goods on a vast scale, the aviation

industry is inevitably a part of product liability. To give
the consumer the finest service possible, numerous
improvements are being done. To keep up with the shifting
nature of trade, aviation security reforms are
constantly in motion.

Note: Product liability depicts the legal responsibility

of the manufacturer or the vendor of goods to
compensate for any defective merchandise offered
for sale.

2 Product Liability in Aviation

3 Product Liability in Aviation
4 Product Liability in Aviation
5 Product Liability in Aviation
6 Product Liability in Aviation
7 Product Liability in Aviation
8 Product Liability in Aviation
 Unit 6

Liability for Surface Damage &

Aviation Liability Insurance

Learning Objectives Introduction

By the end of this unit, you will be
able to:

● Describe The Laws, Acts & the

Conventions

● Discuss the Damages

● Know Liability for Surface Damage

● Explain what is Aviation Liability

Insurance?

● Describe Aviation Insurance

● Explain the Insured, the Broker, and

the Reinsurer
 insight into one of the early rules pertaining to flight.

Case Summary: Swan was farming a garden in the

city of New York when Charles Guille launched a hot
air balloon nearby. But owing to bad circumstances,
Guille wound up dangling down the side of the
balloon's basket. About 200 people saw this and
rushed to aid Guille, destroying the crops and
destroying the fences in the process. Additionally,
the balloon also fell on the fields, adding to the
harm. Swan declared Guille liable for all harm.
Guille claimed he would only be held liable for direct
damage brought on by the balloon landing, but the
trial court disagreed, holding him accountable for
all harm.

Earlier, strict liability was mandated for activities

deemed to be ultra-hazardous, including aviation.
But today, it's a rather typical occurrence and
no longer regarded as a risky practice. In many
jurisdictions, negligence rules therefore apply.

2 Liability for Surface Damage & Aviation Liability Insurance

There are certain exceptions to this, such as the fact
that many jurisdictions use negligence standards.

Aviation activities of the "abnormal" variety, such as

stunt flying or sonic booms, are an exception to this
rule. However, some judicial organizations apply
strict culpability for ground damage and negligence
rules to aircraft-to-aircraft collisions. As a result, the
act is summarized as follows: "If material damage
is caused to any person or property on land or water
by, or by a person in, or an article or person falling
from an aircraft while in flight, taking off, or landing.
● If the damage is the result of two operators, their
Without proving negligence, purpose, or any other
joint and several obligation is decided by the
cause of action, damages in relation to the loss
aircraft with the largest maximum mass.
must be payable as if the loss or damage had been
brought about by the owner of the aircraft.” ● Lessors and financiers of aircraft who are not
operators are not liable.
Damages ● If operators can show that a claimant or the
● The operator's liability caps for each event range person from whom the claimant derives his
from 750,000 Special Drawing Rights (SDRs) for rights did something to create or contribute
aircraft under 500 kg to 700 million SDRs (about to the damage, they (under the Unlawful
US$1.1 billion) for larger aircraft. Interference Convention, the International Fund)

3 Liability for Surface Damage & Aviation Liability Insurance

4 Liability for Surface Damage & Aviation Liability Insurance
precedents. The most significant carrier sector
that must deal with product liability issues is the
aviation sector. There are numerous situations that
necessitate adhering to a specific set of guidelines
in order to resolve minor or potentially major
conflicts between the service provider and the
customer. A few Civil Aviation Acts were created
with this essential criterion in mind.

Some aviation mishaps that occurred prior to or

immediately following the Second World War left a
bad image on the public. As a result of the aircraft's
poor development at the time and frequent pilot
loss of control for unidentified reasons, it was
determined that they posed a serious threat to
those on the ground. People perceived flying
as a novel and mysterious entity that should be
avoided. According to their assumptions, any
aircraft disaster would result in irreparable harm
to the ground. They also thought that this risk was

5 Liability for Surface Damage & Aviation Liability Insurance

Third-party responsibility in the aviation sector those using rental aircraft can obtain insurance.
typically covers the sum that aircraft owners and Numerous coverage options are provided by
operators must pay to cover the medical costs of aviation insurance policies to address virtually
anyone harmed in an aircraft disaster. The costs of every scenario that could have a negative financial
search and rescue missions, fees for emergency outcome.
landings, and injuries sustained while flying the
aircraft may all be covered by this insurance.

Owners and operators of aircraft can choose from

a variety of aviation insurance options. Standard,
antique, experimental, and even seaplanes are
all covered under the insurance. Depending on
the type of aircraft covered, a premium must be
paid. Furthermore, the use of airplanes, whether
for personal or business purposes, affects the
coverage levels.

A business can choose airplane insurance if they

are in the aviation industry or utilize private planes
for business purposes. Even flying groups and

6 Liability for Surface Damage & Aviation Liability Insurance

 Minimizes all
risks
War Risks from Minimizes War
Aircraft Hulls Risks

Personal
Aviation Accident
Liabilities The aviation portfolio Insurance for
includes insurance the Crew

products that airline

operators typically use,
namely
Coverage for the
All Aircraft Hull
crew's loss of a
Risks
license

Up until the Indian government's establishment of of every kind are covered by aviation insurance
the "Open Sky" policy, the Indian aviation market (glider to modern age jet aircraft). At "Lloyds" in
remained segregated due to extremely high taxes London, the largest aviation reinsurance market
and levies on the import of aircraft. A number of is situated. There are also reasonably sizable
new private operators entered the aviation industry markets in France, other parts of Europe, and the
as a result, sparking an increase in activity as they United States.
fought for a piece of the domestic market. Most of
the aircraft used by these private operators were Many of these organizations have purchased the
leased from foreign sources. business and executive planes as a result of the
new government policies, which have also had an
The newest division of general insurance is aviation impact on larger industrial companies, government
insurance. It was developed in the UK. in the agencies, and other organizations. The allied
beginning of this century. Insurance was initially ancillary Industries in India have also benefited
solely available for fire risks. Accidental damage from these developments. All these point towards
coverage and third-party insurance were introduced significant and sustained growth for the Aviation
in 1910. Aerodynamics-based laying devices Industry in India during the coming years.

7 Liability for Surface Damage & Aviation Liability Insurance

8 Liability for Surface Damage & Aviation Liability Insurance
 outside the purview of Major Business, such as impact on revenue. Since the profit margins are so
Privately Owned Aircraft, Fractional Ownership, slim, every expense acts as a barrier. In a similar
Aircraft Belonging to Flying Clubs/Training vein, the Lessor would also like to be sufficiently
Institutes, Aircraft of State Governments, Pawan covered and would prefer to get insurance
Hans Helicopters Limited (PHHL); Private from the most financially stable organizations
Airline Operators, such as Jet Airways, JetLite, because they do not want to skimp on security,
Kingfisher Airlines, Kingfisher Red, Spice Jet, Go even if the price is high. The underwriter must
Air, Indigo, MDLR Airlines, Paramount Airways, function within this context.
Blue.
● The underwriter's top priority would be to:

1.
Choose the insurance policy that best
The Insured, the Broker, and the addresses the risk.
Reinsurer
2. Purchase the insurance on the most affordable
The Insured terms.

● It goes without saying that the Underwriter's first 3. Obtain insurance from reinsurers with excellent
concern is the Insured. In the case of private security ratings.
airlines, the values at stake are very significant.
Because of the high expenses and the protracted The Reinsurance Broker
payback period, airplanes are typically leased
Therefore, GIC (General Insurance Corporation) and
rather than purchased outright. The lessors are
other insurance companies negotiate the terms
typically a group of financiers. In these situations,
and conditions with underwriters in London and
the airlines act as the operator and the lessor
other aviation insurance markets through brokers
acts as the owner, and both have an insurable
on behalf of the major aviation operators in India.
interest.

● The airline operator requires not only thorough The Indian broker must be independently formed or
protection but also a competitive price. This is have a relationship with a reputable foreign broking
due to the high cost of insurance, which has an business. It's important to keep the following things

9 Liability for Surface Damage & Aviation Liability Insurance

in mind while choosing a broker: terms and conditions, and quotes are chosen by
the broker and primary insurer. Beyond the London
o The broker needs to have enough infrastructure.
Market, it can be essential to contact underwriters
o The broker must be in good financial standing.
in other nations. Only after thoroughly evaluating
o Past performance and Allegiance. the risk would the reinsurer determine his rate.

Brokers play a wide range of roles. He: Since it is uncommon for an underwriter to
have first-hand knowledge of the risk, it is the
o Chooses the reinsurers, advises the primary
responsibility of the insured, primary insurer, and
underwriter on the coverage available on the
broker to communicate the risk's facts as clearly
global market, and offers backup services.
as possible. The status of the nation from which
o Helps the primary underwriter by exploring the risk originates, the current state of the aviation
the various international broker markets and market, the financial stability of the insured, pest
obtaining reinsurance quotes. losses, safety standards, operating procedures,
fleet value, and the likelihood and magnitude of
He plays a significant role in our marketing
growth are all factors that the reinsurer considers
strategy by first listing the reinsurance underwriters when determining rates and terms.
and then placing the business. A poor choice
of broker could lead to a failed placement or a Typically, multiple aviation markets would be
failure to place the company with reinsurers involved. As a result, terms and rates would differ.
with sufficient security. It's preferable to leave After reviewing all the reinsurance slips, the net rate
speculation as to what this will result in. to the insured is determined. Reinsurers prioritize
security and consistency as well. As a result, they
The broker is paid a commission by the reinsurers feel at ease working with the same Insured. For the
to do his or her job. primary insurer and broker, this indicates a solid
● As a result, many brokers with a bad track record working relationship. Regular relationship changes
often endanger the entire company transaction have a negative long-term impact on reinsurance
in their haste to earn commissions. As a result, terms.
the primary underwriter needs to be cautious.

● The process of presenting the risk starts once

the broker has determined which underwriters
are most eligible to accept the reinsurances.
Negotiations are held with the reinsures for the
best terms and rates.

The Reinsurers

It is unlikely that a single reinsurer would be able

to handle the entire risk for an insured with a
significant fleet value. Therefore, the lead insurer,

10 Liability for Surface Damage & Aviation Liability Insurance

11 Liability for Surface Damage & Aviation Liability Insurance
 Unit 7

Legal Regime Governing

Crimes in Board Aircraft &
Competition Law
Learning Objectives Introduction
By the end of this unit, you will be One of the greatest inventions is the idea of flying through
able to: an aircraft. Air travel is currently one of the most effective

● Describe Legal Regime Governing modes of transportation. The terrible reality is that crimes

Crimes in Board Aircraft happen anywhere that humans live and have influence,
which gives rise to a new category of crimes called crimes
● Discuss Barriers to Entry and
aboard aircraft.
Anti-competitive Conditions

Only if a company makes a point of being present in a

market can it compete there. So, the first step is to enter a
market. Many marketplaces have particular barriers, making
it challenging for businesses to penetrate. Barriers to entry
have always been a contentious topic. Some academics
believe that as long as a company is prepared and determined
to meet and overcome any obstacles, they cannot
prevent it from entering the market. Others, on the
other hand, view the barriers as a tactic to prevent
entry and reduce competition. As a result, the issue
has never been resolved. There have been many
definitions used as analytical tools, but the flawed
competition policy has always won out.

Legal Regime Governing Crimes in

Board Aircraft
The first such plane hijacking was reported in
Arequipa, Peru, in 1931. After that, numerous further
hijacking events involving planes were recorded in
different parts of the world. One example of a crime
that may be perpetrated on an aircraft is hijacking.
Aerial piracy, illegal aircraft seizures, and unlawful
interference with airplanes are some more offenses
In truth, crimes committed on land can also be
committed aboard airplanes and these offenses
fall into the category of crimes done while flying.

The legal system has established systems of

2 Legal Regime Governing Crimes in Board Aircraft & Competition Law

3 Legal Regime Governing Crimes in Board Aircraft & Competition Law
4 Legal Regime Governing Crimes in Board Aircraft & Competition Law
5 Legal Regime Governing Crimes in Board Aircraft & Competition Law
6 Legal Regime Governing Crimes in Board Aircraft & Competition Law
 Unit 8

Regulatory Agencies

Learning Objectives Introduction

By the end of this unit, you will be
able to:

● Describe What is an Aviation

Regulator?

● Explain Directorate General of Civil

Aviation (DGCA)

● Discuss other Aviation Regulators in

India
2 Regulatory Agencies
3 Regulatory Agencies
4 Regulatory Agencies
5 Regulatory Agencies
 Unit 9

Types of Ownership

Learning Objectives Introduction

By the end of this unit, you will be
able to:

● Describe Types of Ownership

● Discuss Government Ownership and

Control

● Explain Private Ownership and

Participation/ Involvement
2 Types of Ownership
3 Types of Ownership
4 Types of Ownership
5 Types of Ownership
6 Types of Ownership
7 Types of Ownership
 Unit 10

Issues in Transfer

Learning Objectives Introduction

By the end of this unit, you will be
able to:

● Describe Issues in Transfer

● Know AAI as Trustee

● Explain Implementation and Dispute

Resolution: Economic Oversight

● Describe Roles of ICAO & DGCA

● Discuss ICAO Policy and State

Responsibility (Art. 15)

● Know States’ Responsibilities

2 Issues in Transfer
3 Issues in Transfer
4 Issues in Transfer
5 Issues in Transfer
6 Issues in Transfer
7 Issues in Transfer
8 Issues in Transfer
9 Issues in Transfer
 Unit 11

National Legislation

Learning Objectives Introduction

By the end of this unit, you will be
able to:

● Describe Aircraft Act, 1934 (Section

1 to 5)

● Discuss Aircraft Act, 1934 (Section

6 to 8)

● Explain Aircraft Act, 1934 (Section

9)

● Know Aircraft Act, 1934 (Section 10

to 20)
2 National Legislation
3 National Legislation
4 National Legislation
5 National Legislation
6 National Legislation
7 National Legislation
8 National Legislation
9 National Legislation
10 National Legislation
11 National Legislation
12 National Legislation
13 National Legislation
14 National Legislation
15 National Legislation
16 National Legislation
17 National Legislation
 Unit 12

Aircraft Rules, 1937

Rights and Liabilities

Learning Objectives Introduction

By the end of this unit, you will be
able to:

● Describe Aircraft Rules, 1937 Rights

and Liabilities (17)

● Explain Aircraft Rules, 1937 Rights

and Liabilities (18 to 23)

● Know Aircraft Rules, 1937 Rights

and Liabilities (24)

● Discuss Aircraft Rules, 1937 Rights

and Liabilities (25 to 28)

● Describe Aircraft Rules, 1937 Rights

and Liabilities (29)
2 Aircraft Rules, 1937 Rights and Liabilities
3 Aircraft Rules, 1937 Rights and Liabilities
4 Aircraft Rules, 1937 Rights and Liabilities
5 Aircraft Rules, 1937 Rights and Liabilities
6 Aircraft Rules, 1937 Rights and Liabilities
7 Aircraft Rules, 1937 Rights and Liabilities
8 Aircraft Rules, 1937 Rights and Liabilities
9 Aircraft Rules, 1937 Rights and Liabilities
10 Aircraft Rules, 1937 Rights and Liabilities
11 Aircraft Rules, 1937 Rights and Liabilities
12 Aircraft Rules, 1937 Rights and Liabilities
13 Aircraft Rules, 1937 Rights and Liabilities
14 Aircraft Rules, 1937 Rights and Liabilities
15 Aircraft Rules, 1937 Rights and Liabilities
16 Aircraft Rules, 1937 Rights and Liabilities
17 Aircraft Rules, 1937 Rights and Liabilities
18 Aircraft Rules, 1937 Rights and Liabilities
19 Aircraft Rules, 1937 Rights and Liabilities
20 Aircraft Rules, 1937 Rights and Liabilities
21 Aircraft Rules, 1937 Rights and Liabilities
22 Aircraft Rules, 1937 Rights and Liabilities
 Unit 13

New Civil Aviation Policy,

2016 Open Skies Policy

Learning Objectives Introduction

By the end of this unit, you will be
able to:

● Describe New Civil Aviation Policy,

2016

● Discuss India’s Open Skies Policy

● Explain U.S.A. Open Sky Policy

● Know U.K. Open Sky Policy

development of the civil aviation industry, which
will support tourism, employment, and balanced
regional growth. Additionally, it will improve regional
connectivity through infrastructure development
and financial support, as well as corporate
accessibility through deregulation, streamlined
processes, and e-governance.

The new policy's pillars are customers, competition,

connectivity, and investment (both domestic and
foreign). Its mission is to facilitate considerable
expansion in the civil aviation industry by making
flying convenient and economical. Further stated
aims are as follows:

● To make doing business easier through

deregulation, streamlined procedures, and
electronic governance.

● To reach domestic ticket sales of 30 crores by

2022 and 50 crores by 2027. To expand freight
volumes to 10 million tons (MT) and international
ticketing to 20 crores by 2027, respectively.

● To reach 300 million domestic passenger miles

traveled by 2022, a fourfold increase.

2 New Civil Aviation Policy, 2016 Open Skies Policy

3 New Civil Aviation Policy, 2016 Open Skies Policy
4 New Civil Aviation Policy, 2016 Open Skies Policy
 ● By integrating passenger and freight services,
to assist carriers in offering services outside
of India.

iii)ATOC Recommendations to Implement “Open

Sky Policy”: The Air Taxi Operators Committee
(ATOC), which was made up of significant
operators included In order to implement the
1990-developed "Open Sky Policy," East-West
Airlines, Damania Airways, Jet Airways, and
ModiLuft urged that the Air Corporation Act of
1953 be repealed.

iv) Requisites for Open Skies:

● More freedom to operate regularly scheduled

air services by commercial operators.

● Imagines fierce competition.

● Probability of overcapacity on specific routes.

● Airport infrastructure development should be

5 New Civil Aviation Policy, 2016 Open Skies Policy

 taken into account. Operators must, nevertheless, adhere to
●
operational and safety standards when
● To accommodate the rising demand for travel,
conducting such flights.
more airport facilities are required.
vi)India Moving Towards Open Sky Policy: India
v) Promoting Exports (Indian Objective): In order
is gradually implementing an open sky policy.
to encourage exports in compliance with the
International charter flights are already allowed
provisions of the abovementioned Aeronautical
to some of the larger airports. Services for
Information Circular (AIC) No. 18/1992, the
helicopters and air taxis have already begun.
Government of India established the Open Sky
Better airport infrastructure, more extensive use
Policy for Cargo Flights from India:
of computers in the aviation sector, and more
● Cargo planes may operate without restriction
aircraft are all necessary.
from airports with customs/immigration
vii)Various Opinions on the Open Sky Policy: Some
facilities:
see it as being open to all, while others see it as
○ By operators, both planned and unscheduled.
giving foreign airlines total freedom to fly into
○ Such flights may be run by domestic and India. Some people even think that controlling air
international airlines. space is unnecessary:

● Carriers are free to set rates in accordance ● The need for national air laws to be incorporated
with supply and demand conditions. into the international framework.

6 New Civil Aviation Policy, 2016 Open Skies Policy

 ● The Open Sky Policy aims to allow foreign
scheduled airlines. In recent years, it has been
more advantageous to take a multilateral
approach to regular air travel in order to satisfy
the world's need for traffic tourism.

● India has shown receptivity to it and holds the

view that the open sky policy advances the
interests of the nation. There are now more
flight options. Based on the potential for trade
and tourism between India and the relevant
nations, new foreign airlines have been
invited. Like any other nation, India has taken
the necessary precautions to ensure that the
presence of international airlines does not
adversely affect our national carrier Air India.

● Open Sky Policy: A Live Idea: In modern

international aviation relations, open sky policy
is a living idea. The airlines of industrialized
nations, particularly those in the USA and
Europe, compete to expand and open new States of America advocated an "open sky policy."
markets worldwide. An open sky policy that The goals of the policy include:
allows foreign scheduled aircraft to operate
● Fostering unrestricted competition.
is no longer seen as endangering domestic
aviation in a globalized economy. By 2010, 51% ● A chance-to-opportunity exchange.

of the world's scheduled international aviation

B. A liberal agreement under the Open Sky Policy
traffic, up from 35% today, will be handled by
must have certain requirements.
the Asia Pacific area.
● Liberal grant of a service route.

The U.S.A. Open Sky Policy ● Tariff competition.

● Supporting affordable transportation.

A. To liberalize international air travel, the United
The
● ability to conduct business without
interference from unfair or discriminatory
activities on the other side of the border.

C. The United States of America Executes Liberal

Bilateral Agreements

● In 1978, the United States signed bilateral

agreements with Israel and the Netherlands as

7 New Civil Aviation Policy, 2016 Open Skies Policy

8 New Civil Aviation Policy, 2016 Open Skies Policy
 imposes controls on the franchisee's operating
procedures. The implementation of franchising
principles is appropriate for the needs of the
airline industry at this time, since the personality
produced and displayed by a highly successful
airline has influenced the airline's reputation.

One of the most important global businesses

that has made a significant contribution to the
expansion of trade and commerce is the airline
advertise the requirements of international aviation industry. Globally, the sector must adhere to the
transportation. established rules and requirements.

G. There was a need to open up the skies, according An operating license is necessary for an airline.
to ICAI Initiatives (Colloquium-1992). Although the The system of restrictive bilateral agreements
Open Sky Policy presented numerous difficulties, it is supported by limits on ownership and control.
is now more feasible than in the past. It emphasized High-quality services have resulted from strategic
that the bilateral system of negotiating air rights alliances. Airport privatization is a broad term that
had outlived its purpose and that a multilateral describes a shift of ownership. The Open Sky Policy
system could be seen as the answer. and Liberalization have given the Consumer better
services at lower prices. Open skies policy, which
seeks to slacken restrictions and regulations,
U.K. Open Sky Policy is an acknowledged idea on a global scale. The
i) The European Union adopted the "OPEN SKY" idea arrangement offers the greatest operating flexibility
in 1977 as a means of promoting competition possible. It gives airlines unrestricted access to
among European Carriers and encouraging the markets of its partners. Additionally, it gives
customers to receive competitive services. airplanes the freedom to go to all supplementary
The alliance strategies amongst airline carriers and distant points.
covered by the open sky legislation prevented the
strategy from working out as favorably as hoped.

The main players aggressively formed alliances

with smaller carriers through franchise
agreements, including British Airways, Lufthansa,
KLM, and Swissair. They were able to reach
markets as a result that were not covered by their
air service agreements.

ii) The franchisor permits the franchisee to use the

franchisor's business name, and the franchisor

9 New Civil Aviation Policy, 2016 Open Skies Policy

Although the policy benefits rich nations, it may
be more detrimental to the interests of airlines
in developing nations than beneficial to their
economies. The biggest and most developed
nations may eventually dominate the global air
transportation sector, bringing about a return to a
monopolistic system. It would be more suitable to
routinely rewrite the current bilateral agreements in
order to address developing needs.

Summary
● There are still a number of organizations that are
under government ownership and control, despite
the worldwide aviation industry becoming more
liberalized and deregulated.

● The publicly held organizations work to prevent

private owners from entering.

● Private entries, however, will promote healthy

competition if they are encouraged.

● There must be efforts to encourage coordination

between private and public operators for better
efficiency and operations.

10 New Civil Aviation Policy, 2016 Open Skies Policy

 Unit 14

Changing trends of
Liberalization and ownership
in Air Services in India
Learning Objectives Introduction
By the end of this unit, you will be The world is moving toward greater liberalism. Despite this,
able to: there are still a lot of limitations placed on airline operations,

● Describe Liberalization & licenses, and ownership by the government. Commercial

Deregulation freedom could boost the performance and efficiency of

the airline business. With changing circumstances, even
● Know Airline Sector
the Indian government should assist the aviation sector
● Explain the 1944 Chicago in increasing or rationalizing ownership capacity while
Convention adhering to customer expectations. By encouraging open

● Discuss The post-Chicago world markets and flexible ownership, the efficiency of air travel
can be improved.

The global trend toward air travel liberalization, including in

India, is unstoppable. Global fluctuations and their effects
2 Changing trends of Liberalization and ownership in Air Services in India
construction. A prime example is the privatization
of Delhi and Mumbai, two of the nation's busiest
airports (Ministry of Civil Aviation, Government of
India, 2008a). In essence, the government wanted
to draw both domestic and international airline
businesses.

The following reasons led the government to de-

regulate the airline sector:

● The desire to support economic growth.

trade in products and services over the past 50
● The ambition to enhance aviation services.
years. The ability to freely make investments
● The development of liberalized airline competition is regarded as being crucial to the effective
on a global scale. operation of the market in other sectors of
developed countries. Although there are certain
outliers and protectionist regulations, there are
Airline Sector
less limitations on investment than there are in
1. Despite some of the most onerous regulations the aviation industry. The majority of industries
on global ownership and control, the aviation allow investment decisions to be made freely,
industry has helped fuel the fast expansion of subject only to adherence to applicable labor,

3 Changing trends of Liberalization and ownership in Air Services in India

 fulfillment of the economic and commercial
requirements deemed required for operation. The
nation where an airline has its "principal place
of business" is required to provide the airline's
operating license and AOC in most jurisdictions.
The nationality of the airline's owners serves
as the foundation for determining the airline's
primary location of business where ownership
and control restrictions apply. The "purity" of
an airline's investor base and, consequently, its
eligibility for an operating license from its home
state have been effectively eliminated as a result
of cross-border mergers and acquisitions.

4. In the past, airlines were often controlled by the

government and had a lower commercial focus.
There were shared and pooled agreements,
earnings, and capacity sharing. However, due
health, safety, competition, etc. rules. But to limitations on ownership and control, airline
regrettably, the aviation industry is an exception. operators find it challenging to acquire foreign
Therefore, liberalization has not completely finance and grow operations when airline
incorporated aviation. privatization and industry globalization generally
2. The 1944 Chicago Convention, a global accord take off. The alliance-building strategy has
drafted to regulate the developing international started in an effort to partially address these
aviation business, is partially responsible for problems. This makes it possible to coordinate
the airline industry's relative conservatism. As a several aspects of business operations and
result, a complicated web of bilateral air services services. However, this is far from being able to
agreements came into existence, whereby nations enable the commercial advantages of foreign
exchanged the rights to fly through government- ownership or control.
to-government negotiations. It's interesting to
note that although the Convention itself did not
impose any explicit restrictions on ownership
and control based on nationality, the individual
nations and trading blocs did emphasize such
restrictions in an effort to bar third-party carriers
from accessing international traffic rights.

3. An airline must possess both an Air Operator's

Certificate (AOC), which attests to the company's
compliance with safety regulations, and an
operating license, which attests to the company's

4 Changing trends of Liberalization and ownership in Air Services in India

5. With various moves to open up the aviation Europe's open borders, frequently offering
industry, international aviation policy has started services that have no link to the government
to shift dramatically in the field of traffic rights that issued their license. The question of which
control in recent years. The necessity for efforts European nationalities hold stock in these
has been spurred on by the US-style "Open Skies" commercially successful airlines as well as the
agreement. For international routes between question of which EU country the airline has its
signatory nations, the agreement normally entails main base of operations are no longer relevant
the lifting of all restrictions on the frequency and outside of identifying which country is in charge
destination of services. "Open Skies" agreements, of their regulatory oversight. Australia and New
however, only partially normalize the industry Zealand have similarly liberalized ownership and
because they continue to impose access control, opening up domestic airlines to foreign
restrictions to domestic markets and unmodified investment (as well as international carriers in
ownership and control regulations. The Open the case of New Zealand).
Aviation Area (OAA) agreement in Europe also
6. Evidence from Europe and Australia indicates
goes beyond "Open Skies" by removing any
that these adjustments are advantageous for
limitations on ownership and management (for
the sector and its customers. Consumers may
EU citizens in the case of Europe) . As a result,
benefit from more competition, better network
airlines like Ryanair and EasyJet started to
connectivity, and more affordable services due to
appear. These carriers prioritize travel within

5 Changing trends of Liberalization and ownership in Air Services in India

6 Changing trends of Liberalization and ownership in Air Services in India
● That it has safeguards in place to make sure that
compliance continues.

An Operating License: If an airline satisfies the

commercial standards thought required for a
viable operation of an airline, an operating license
is awarded to the airline. Typical needs for a
commercial passenger carrier will be:

● Verification of the airline's "principal place of

business" in the nation issuing the document,

● That it is adequately funded.

● It carries sufficient third-party and passenger

liability insurance.

● It has a current AOC.

● It can demonstrate that the nation's citizens

control and own the airline.

A Route License or Permit: When approval is

given for a domestic or foreign carrier to conduct
its services, the pertinent and interested authority
issues a route license or license. The majority of
bilateral agreements stipulate that a foreign carrier
intending to operate in a country's territory must
possess a current operating license, and that a
of the partner state. The system of restrictive
carrier will only be granted an operating license or
bilateral agreements is supported in this way by
permit if the majority of its stock is owned by the
ownership and control constraints.
country's citizens. These conditions taken together
have the result that only national carriers are 1.
Market Oriented Approach was Adopted

permitted to exercise bilateral rights. in International Aviation Environment and

Energized by:

i) Privatization
The post-Chicago world
ii) Strategic Cross
In the post-Chicago era, access to foreign markets
by airlines is strictly regulated and governed iii)Border mergers

by a number of international accords. Capacity iv)Market Airlines (Combining Acquisitions

restrictions, tariffs, and limited market access Alliance Losing Identity)
concessions were typically only offered to airlines
2. From year to year, the process of liberalization
whose primary owners and controllers were citizens
has been as follows:

7 Changing trends of Liberalization and ownership in Air Services in India

 ● Deregulation of the U.S. Transport by Air ● Some countries have advocated Open Skies
(Emergence of New Air Lines, reduction in with complete freedom in operations, viz. The
fares) United States.

● 1990: The European Commission took steps ● Demand for multilateralism stemmed from the
toward liberalization. USA, which has several International Airlines
and a huge internal market. It has Mega
Australian
● domestic deregulation was
Carriers.
completed in 1993.
4. Factors for Private Sector Initiatives:
● 1995: Smaller European nations and the US
signed the Open Skies Agreement. a) Huge Economic Potential: Governments have
underutilized this sector's potential for many
● 1995: US and Canadian markets were gradually
years in order to further their own national
deregulated.
interests.
3. Air Trade Agreements, Bilateral, Multilateral,
b) The case for privatization was advanced by
and Plurilateral:
state departments' inability to keep up with
● The emerging trend is plurilateral: Smaller
rapidly evolving aviation technologies and
groups of nations with similar ideologies join
to develop corresponding operating and
together for mutual economic gain.
management skills.
● Pressure is mounting to switch from a
c) The pace of privatization accelerated due to
bilateral system (between two countries) to
states' failure to provide adequate funding to
a multilateral structure (between different
enable the continuing development of aviation
groups of countries).
systems in keeping with the brisk expansion of

8 Changing trends of Liberalization and ownership in Air Services in India

 traffic and advanced technologies. ● The restrictions and control over market entry,
prices, and service levels under this agreement
d) Demands for Economic Reforms: Consumers'
made it clear that bilateral agreements have
increased access to information and
their limitations.
disposable incomes have increased demand
for a wider range of airlines, lower ticket prices, Three aspects of air transportation are covered
and noticeably higher-quality service. by the General Agreement on Trade in Services
(GATS):
5. Competition Intensifying Globally in Aviation
Industry Exerted Pressure on: ● Maintenance and repair services for aircraft.

● Yields. Services
● for computerized reservation
systems.
● Cost cutting to keep profit margins intact.
Promoting and selling air transportation
●
● New approaches to being economically viable.
services.
● The removal of burdensome government
8. Indian Civil Aviation Industry Privatization:
regulations.
● A 1989-enacted policy known as "Open Skies".
6. Strategic partnerships have produced:
● A select few small airlines started acting as
● Superior services
"Air Taxi Operators." The U.B. was the first air
● Taking share of the market

● New possibilities

● Risk Transfer

● Eliminating regional restrictions

● Looking into enormous, unexplored business

prospects

7. Additional developments

● Renegotiating the bilateral agreement is an

item to get rid of obstacles to competition.
The following three Packages of reforms were
introduced over a Decade from mid-1980.

● The GATS now addresses leasing (General

Agreement on Trade in Services).

● Subsidizing specific facets of air travel for

tactical, geopolitical, political, and economic
objectives. As air travel becomes increasingly
business-oriented, subsidies are decreasing.

● Simplifying customs clearance procedures.

9 Changing trends of Liberalization and ownership in Air Services in India

 taxi operator. Group (United Breweries) (United b) A publicly owned company, its assets, or its
Breweries). stock may be privatized and sold to private
parties.
● 1992 Turning Point; The East-West airlines in
February 1992. c) Basic principles behind privatization:

● Damania Airlines, March 1993. ● To increase individual freedom.

● Jet Airways, Archana Airways, and ModiLuft in ● Support and progress through efficiency.
May 1993.
● Approach to demands of customs.
The former Act was abolished by the Air
● Shrug off public debt.
Corporation Act in 1994. By granting Air Taxis the
● Ease the potential stranglehold of trade
status of Airlines, this ended the state's monopoly
unions by forcing management to face the
over the civil aviation sector and legitimized their
harsh realities of the marketplace.
operations.
d) Seven fundamental values behind privatization:
● Seven private operators received status as
scheduled airlines by 1996. Deregulation has ● To promote economic efficiency.
also begun in India in an effort to increase ● To encourage more private initiative while
aviation traffic and make domestic airlines reducing government involvement in the
more competitive. For aircraft, the customs industry's decision-making process.
duty was 18.5%. It is currently 3% lower. All
● To offer the buyer a selection.
Indian enterprises now have access to the
aircraft import market. ● To encourage a larger percentage of
ownership.
a) Definition of privatization
● To provide people the chance to participate
● Transfer of ownership (Divestments of
in competition.
assets to the sale of shares).
● Expanding the country's capital market.
● Participation of private equity (Management
and operation contract and leases). ● To bring in new money for the state's coffers.

● Green Field Projects Franchising of public e) Justifications for privatization:

goods). ● Improved economic performance

● Effective productivity

● Market-based competition. A reduction

in public sector inefficiencies due to
underutilization of financial resources.

9. A change in ownership, or privatization, of an

airport, can take several different forms.

● Contracting out

● Franchises

10 Changing trends of Liberalization and ownership in Air Services in India

 ● Management contract

● Management contract Consider Pittsburgh

(Belfast)

● Leasing for Development and Operations

● Joint-Venture, through:

a. Build, own, operate

b. Build, own, operate, and transfer

c. Floatation of shares in the capital market

d. 100% outright sale

Summary
● Many organizations are still under state control,
despite the international aviation industry being
greatly liberalized and deregulated.

● Publicly owned-airports and airlines make an

effort to limit the entry of private players.

● Due to state meddling, overstaffing, and poor

upkeep, these enterprises are also underutilized
and operate below their potential.

● Because of the intense rivalry, privatization is,

therefore, necessary and may also inspire the
public-owned players.

● A country must practice privatization if it wishes

to proceed down the liberalization route.

● To create a balance between public and private

operators, efforts should be made.

● Therefore, a liberalized aviation policy should

aim to promote a national market that is open,
equitable, and competitive.

11 Changing trends of Liberalization and ownership in Air Services in India

 Unit 15

General Insurance Policy

Learning Objectives Introduction

By the end of this unit, you will be Insurance is a contract between two parties in which one
able to: party (the insurer) agrees to pay the other party (the insured)

● Describe Aviation Insurance a quantity of money or its equivalent in the case of the
occurrence of a specific future event in exchange for a
● Discuss Nature of Contract of
predetermined fee (premium).
Insurance

● Explain Fundamental Principles of There are certain special principles in the insurance contract.
Insurance Both parties must have no control over the insurable interest,
and there must be some degree of negligence or uncertainty.
It has been noted that the insurance contract is primarily
controlled by laws that are a part of general contract law.
But it has attracted so many of its own rules that it is entirely
appropriate to refer to the contract as "Law of Insurance."
Aviation Insurance solutions. The choices can be altered to meet the
various needs of different clients. Every sort of
It is a truth that the aviation sector is quite vulnerable
insurance offers a very distinct kind of coverage,
to risks. Therefore, aviation insurance can
therefore it's critical to comprehend how each one
significantly aid in dealing with unplanned losses.
differs from the others.
Aviation insurance covers hull losses in addition to
liability for passenger injuries, environmental harm,
and third-party property damage brought on by Types of Aviation Insurance
aircraft mishaps.
Unexpected events and uncertainties can, as we
all know, cause financial stress. Therefore, it is in
According to the demands and preferences of the
everyone's best interest to safeguard their material
customer, aviation insurance offers a variety of
possessions against harm and loss. The assets

Types of aviation insurance

Hull (motion) Insurance for

Aircraft
insurance for passengers'
insurance
ground risk liabilities
Ground risk hull
Public liability
insurance (non-
protection
motion)

2 General Insurance Policy

must be safeguarded against both their personal
and commercial value. General Insurance policies
are designed to relieve the business from this
burden. The purpose of all insurance is to protect
against risks and hazards that could harm or
interfere with human life.

A person who agrees to pay a specific amount of

money, known as a premium, that protects them
against any loss as stated is known as an insured (or
assured). Fire, maritime risks (marine insurance), difficulties, unforeseen weather circumstances,
life risks (life insurance), accidents, and burglary pilot negligence, etc. The conditions, terms, and
are only a few of the dangers that can be covered restrictions of aviation insurance are considerably
by insurance. In fact, almost any incident that might different from those of other forms of transportation
occur today can be insured against for a price that insurance, it is necessary to remember.
reflects the risk. The aviation sector is exposed to
numerous dangers and risks. Aviation insurance Numerous possibilities are offered by various
is a specialist insurance that has been developed aviation insurance policies, each of which is
to give coverage for certain aircraft operations specifically designed to meet the various needs of
and other potential hazards in aviation. The each client. Each plan's forms of coverage are quite
dangers can emerge due to variables like technical particular to that particular plan. In order to prevent
further confusion and complexity, it is crucial to

3 General Insurance Policy

4 General Insurance Policy
5 General Insurance Policy
6 General Insurance Policy
7 General Insurance Policy
8 General Insurance Policy
the damage. The insured is required to act in the In accordance with the guiding concept, "Every loss
same way he would have otherwise if there was no that plainly and proximally results, whether directly
insurance. or indirectly from the incident insured against is
within the policy," this is true. The proximate cause
6. Principle of Causa Proxima (or Principle of
is taken into consideration, and compensation
Proximate Causes)
is determined by whether the hazard that caused
This rule states that when a loss has more than the loss was one that the guaranteed was insured
one possible explanation, the actual cause must against. The Insurance Law looks to the closest
be taken into account. For instance, a person might cause when a result is the product of two causes:
be hurt in an accident. On the route to the hospital,
● "Cause Proxima" is Latin for "Nearest Cause."
he contracts an infectious sickness. The infectious
sickness causes the person to pass away. The ● Multiple factors can contribute to a loss. if there
sickness, not the accident, will have caused the is only one cause of insurance for the property.
loss in this instance. When determining the scope In this situation, the accident's closest cause is
of compensation, the insurance companies must identified.
consider the actual reason. The insured will now
be eligible for any health or illness claim in this The insurer will only pay the claim if the closest
situation rather than an accident claim (subject to cause is covered.
the nature of policies taken).

9 General Insurance Policy

10 General Insurance Policy
 Unit 16

Judicial pronouncements

Learning Objectives Introduction

By the end of this unit, you will be An official declaration or announcement, as well as the act
able to: of pronouncing, declaring, or saying anything formally, are all

● Describe Judicial Pronouncements examples of pronouncements.

V
The Indian judiciary has always been crucial in making legal
judgements. A nation's judiciary is a crucial component. The
government has no business interfering with or influencing
the choices made by our nation's dignified judges. This
system makes it possible to offer judgements and decisions
that are fair and impartial. All factors, including a State's
trade and commerce, turn to the legal system for a fair and
impartial method of resolving any conflict.
Judicial Pronouncements V it was agreed that the consignment should arrive
within a fair and minimum amount of time. The
Negligence of Air India – Failure to Deliver
defendant has neither presented any documentation
Consignment in Time to Consignee. Maintainability
to the court nor filed any documentation to support
of Suit by Defendant:
this claim. A suitable time period of six months
Suit for recovery - Non-delivery of the consignment is not a guarantee that the items will be kept or
in a timely manner - Damages and loss of reputation, won't be delivered to the buyer for a year or more.
entitlement - Plaintiff shipping leather shoes upper The shipment was booked for flight. This alone
for delivery at Denmark - Consignment booked demonstrates the need for delivery; otherwise, no
by Air India - Non-delivery of consignment over a one would spend money transporting the products
period of time - Consignee refusing to take delivery by air. If the contract's conditions are interpreted in
due to undue delay because goods become useless this way, the consignment should be transported by
and worthless - Reputation of plaintiff lowered in airplane within a reasonable amount of time, and
the market - Claim for the cost of the goods along the consignee should pick it up at the airport where
with– Goods not to be retained for a year or so it will be delivered. In their letter dated 2.3.1983,
– Defendant liable for undue delay in delivery of the defendants already acknowledged that there
consignment – Carriage by Air. had been an excessive delay in the delivery of the
products. There was no privity of contract about
Held: The specifications of the commodities are the obligations of the other two airlines, and if there
listed as being leather shoes on the airway bill. The was, it was between the defendants and those
value of the customs, for which the plaintiff paid airlines rather than the plaintiff. The only parties
the requisite fees, is also mentioned. Second, even who can be held liable and no other party are those
if there was no time limit specified in the invoice, parties between whom there is privity of contract.

2 Judicial pronouncements
In the current case, the plaintiff specified that the
defendant complete an airways bill for travel from
Delhi to Esbjerg. As a result, the plaintiff's contract
is wholly and exclusively with the defendants.

The question now is whether the plaintiff is entitled

to damages and reputational harm. Despite the
fact that the defendants agreed to deliver the
consignment within a reasonable amount of time,
their failure to do so for any reason does not entitle
the consignor to such damages. parties must establish their claims by providing
evidence, particularly to their previous and
In spite of this, the plaintiff has not shown any potential consumers, in order to pursue damages
evidence or witnesses to demonstrate the kind of for reputational harm.
harm or loss it has incurred as a result of the non-
delivery of this specific consignment. Additionally, According to the law, the defendant was responsible
he must demonstrate that the plaintiff's image has for the consignment's late delivery. By requesting
declined in the foreign market or that, as a result, an alternative method of consignment disposal, the
he did not send any additional consignments defendant cannot hide from its responsibility. Due
to its clients. Even in the absence of this, it is to the late delivery and the useless and worthless
challenging to quantify the harm or business loss state of the items, the consignee refused to accept
caused by such an occurrence. In these situations, delivery. It does not imply that the defendants can

3 Judicial pronouncements
 in international markets because there was no
circumstance that might have caused such a loss.
The only reason the lawsuit is being dismissed is
because the defendants failed to deliver the cargo
within a reasonable amount of time; the incentive
cannot be compensated for any other reasons or
types of loss or damages. Ramnath Exports Private
Ltd. vs. Chairman, Air India (19/05/2002), 2003 AIR
(Del) 461: 2003 (105) DLT 341: 2003 (6) AD (Delhi)
281 [J.D. Kapoor, J.]

Cancellation of Permit for Carrying on Aviation

Business Constitution of India Art – 226.

Aircraft Act, 1934, Section 6 - Cancellation of

license or permits for carrying on aviation business
- Natural Justice, non-compliance, fatal - Refusal
to grant security clearance - Permits valid until
April 19, 2002 - No Show Cause Notice Issued
- Appellants Were Not Warned of Possibility of
Cancellation - Rules Do Not Exclude Principles of
Natural Justice - No Opportunity of Hearing Effect -
The decision on the application for license renewal
has been directed. Airport Rules, 1937, Rule 19(3)(c)
- Administrative Law - Natural justice - Compliance
with, necessity, revocation of license or permits for

absolve themselves of responsibility by merely

notifying the consignor of how to dispose of their
shipment. Because the shipment wasn't delivered
within a reasonable amount of time, it became
useless for both the consignor and the consignee.
Therefore, in accordance with the shipping bill
agent's commission, the defendants are required to
pay the plaintiff damages for the value of the cargo
and loss of drawback.

Thus, the suit is likely to be decided in favor of

the aforementioned items and nothing less. The
plaintiff does not have standing to assert that it
suffered a loss of incentive due to its reputation

4 Judicial pronouncements
conducting aviation business. apply unless they are specifically excluded or
excluded by necessary implication under current
Smt. AIR 1978 SC 597, Maneka Gandhi v. Union law, even in the case of an administrative action
of India and Another, AIR 1978 SC 851, Swadeshi that affects a citizen's civil rights (as in the present
Cotton Mills and Others, AIR 1984 SC 1271, and case and as held by the learned Single Judge).
Raghunath Thakur v. State of Bihar and Ors. Relied; Rule 19(3)( The principles of natural justice are not
JT 1998 (4) SC 728. expressly or even implicitly excluded by paragraph
(c) of the Rules. Given this situation, the least the
Held: According to Section 6 of the Act, the respondents might have done was to send a show-
cancellation order must be published in the Official cause notice to the appellants outlining the details
Gazette. In the respondents' case, the Official of the planned cancellation of all of their permits,
Gazette was not even alerted that the licenses which were valid until April 19, 2002. Admittedly,
issued to the appellant company had been revoked. the appellants received no showcase notice. The
As a result, there was no emergency to revoke the risk of the permits being revoked was not even
permits issued to the appellant company, and the hinted at when it came to the appellants. For this
only reason action was done that was detrimental reason, we maintain that the order of cancellation
to the appellants' interests was to exercise the dated September 5, 2001, was unlawful and that
authority afforded by Rule 19(3)(c) of the Rules. The the learned Single Judge correctly stated that it
principles of natural justice would automatically was "not sustainable in law.”.

5 Judicial pronouncements
A.K. Sharma vs. Director-General of Civil Aviation
[DB] (18/04/2002)], 2002 AIR (Del) 357: 2002 (98)
DLT 738: [Anil Dev Singh, J: Madan B. Lokur, J.)

Summary
● In addition to the Aircraft Act, certain elements
of the Air Corporations Act also serve as the
foundation for Rule 134's objectives.

● The rules regarding the ban on marriage during

the first four years of employment are not
arbitrary nor unreasonable. Vesting was carried
out for many reasons than only to improve the
Authority's management of the Union properties.

● The right to run a business is referred to as

proprietary power.

● The Central Government asserts that all of the

Authority's assets are truly Union assets.

● There is no doubt that the items are delivered by

people who act as the carrier's representatives
and represent themselves based on the process
for unloading and accounting for the cargo.

● A lawsuit against a foreign state cannot be filed

without the central government's approval.

6 Judicial pronouncements