The Director General of Civil Aviation is responsible for regulatory functions in the field of Civil Aviation. He is responsible for economic regulation of air transport services to/from/within India and also for enforcement of civil air regulations for securing the safety of aircraft operations. The functions performed by the Director General of Civil Aviation include registration of civil aircraft in India; issue of certificate of airworthiness to such aircraft; licensing of pilots, aircraft maintenance engineers and flight engineers; and conducting examinations for issue of various licences.

With the repeal of the Air Corporations Act, 1953, and enactment of the Air Corporations (Transfer of Undertakings and Repeal) Act, 1994, air transport has been demonopolised in the country. As a consequence during the period under review, three private operators viz. Jet Airways, Sahara India Airline and Archana Airways are operating as Scheduled Private Airlines out of seven operators who were issued permit initially. In addition to these private airlines one more airline subsidiary of Indian Airlines viz. Alliance Airlines which commenced its functioning in 1996-97 continued its operations during the period under review.

Air India, as the designated airline of the Government of India under various bilateral air services agreements, has been authorised to operate long and medium haul scheduled international air services. Air India has also been operating domestic services in conjunction with the international services. Indian Airlines has been operating domestic scheduled air services as well as international scheduled air services to neighboring countries. Indian Airlines operated international air services to Bangladesh, Bahrain, Nepal, Maldives, Sri Lanka, Pakistan, Malaysia, Thailand, Myanmar, Singapore, Kuwait, Oman, and U.A.E.

Air transport services to, from and within the country have also been augmented by:

a.       Pawan Hans who operates non-scheduled air services by Helicopters.

b.       Air Taxi Operations subject to and in accordance with the provisions contained in AIC 03/1995.

c.       Tourist Charter operations subject to and in accordance with the provisions contained in AICNo. 07/1997 dated 26.9.1937.

d.       All cargo international flights to/from India in accordance with the provisions contained in AIC 18/1992.