India’s aviation arbitration cases will still fly off overseas, Pg 6

Key Highlights

Legacy of Colonial-Era Aviation Law

• Aircraft Act, 1934 outdated; Bharatiya Vayuyaan Adhiniyam, 2024 aims to replace it.

• Still, no focus on aviation-specific arbitration, despite rising private participation.

Key Problems in Aviation Disputes

• Issues like delay compensation, cancellations, contracts remain unaddressed.

• Current Arbitration Act of 1996 lacks sectoral expertise and quick enforcement.

Why Arbitration Goes Overseas

• 90% of major aviation cases go to Singapore, UK due to their dedicated aviation tribunals, efficiency, and enforceability.

• India lacks confidence among foreign companies to resolve high-stakes aviation disputes.

Missed Opportunity in 2024 Reforms

• Experts say the new aviation law did not build a specialised arbitration mechanism, limiting its impact on investor trust.

Analysis & Way Forward

• India must build sector-specific arbitration institutions, adopt global best practices, and appoint neutral arbitrators.

• A stable dispute resolution environment is key for India to emerge as an aviation arbitration hub.

Mains Mock Question:

"India has made progress in aviation policy reforms, but arbitration remains a weak link. Critically examine how this affects investor confidence and suggest solutions."