The FAA has downgraded India from Category 1 to Category 2.

The downgrade implies that the Directorate General of Civil Aviation (DGCA) does not meet the safety standards set by UN technical agency for aviation, International Civil Aviation Organisation (ICAO), and not the carriers as such.

Jet Airways and state-run Air India operate flights from to the US. Air India flies to Chicago and New York and Jet Airways to New York.

In the new scenario, Air India and Jet Airways will be not be able to increase the number of flights to the US. It may affect code-sharing arrangements with US airline.

What is Category 2 rating?

Category 2 rating means a country lacks regulations necessary to oversee air carriers in accordance with minimum international standards or its civil aviation authority is deficient in areas like technical expertise and personnel training.

Civil Aviation Minister Ajit Singh told the press that the development is “very disappointing and surprising.” He said all the corrective steps suggested by the FAA would be implemented by March. Asked about the Indian diplomat Devyani Khobragade episode had a anything to do with the FAA decision, he said, “I don’t believe this. There is no connection between the two."

The Minister said India was now 95 per cent compliant. “The remaining five per cent, that is recruitment and training of senior technical personnel in the DGCA, would be completed by March," he added.

The FAA said it follows appraisals by the UN agency. The ICAO had conducted its own safety audit a year ago.

Pakistan is in Category I while India joins Bangladesh in Category 2.

According to a press release issued by the FAA, a Category 2 rating means a country either lacks laws or regulations necessary to oversee air carriers in accordance with minimum international standards, or that its civil aviation authority – equivalent to the FAA for aviation safety matters – is deficient in one or more areas, such as technical expertise, trained personnel, record-keeping or inspection procedures.

The FAA statement said, "The US Department of Transportation’s Federal Aviation Administration (FAA) today announced that India has been assigned a Category 2 rating under its International Aviation Safety Assessment (IASA) program, based on a recent reassessment of the country’s civil aviation authority. This signifies that India’s civil aviation safety oversight regime does not currently comply with the international safety standards set by the International Civil Aviation Organization (ICAO); however, the United States will continue to work with India’s Directorate General for Civil Aviation (DGCA) to identify the remaining steps necessary to regain Category 1 status for India. With a Category 2 rating, India’s carriers can continue existing service to the United States, but will not be allowed to establish new service to the United States.

A December 2012 ICAO audit identified deficiencies

"India achieved a Category 1 rating, signifying compliance with ICAO standards, in August 1997. A December 2012 ICAO audit identified deficiencies in the ICAO-set global standards for oversight of aviation safety by India’s Directorate General of Civil Aviation (DGCA). Subsequently, the FAA began a reassessment of India’s compliance with ICAO standards under the FAA’s IASA program, which monitors adherence to international safety standards and practices. The FAA has consulted extensively with the DCGA and other relevant Indian government ministries during its evaluation, including consultations in India in September and early December, and meetings this week in Delhi.

"'U.S. and Indian aviation officials have developed an important working relationship as our countries work to meet the challenges of ensuring international aviation safety. The FAA is available to work with the Directorate General of Civil Aviation to help India regain its Category 1 rating,' said FAA Administrator Michael Huerta.

"The Government of India has made significant progress towards addressing issues identified during the September 2013 IASA assessment. On January 20, the Government of India took further steps to resolve outstanding issues when the Indian Cabinet approved the hiring of 75 additional full-time inspectors. The United States Government commends the Indian government for taking these important actions, and looks forward to continued progress by Indian authorities to comply with internationally mandated aviation safety oversight standards."

- RM Nair