Are cash-starved airlines putting fliers at risk?

New Delhi: With Indian carriers finding it increasingly difficult to pay salaries on time and running up dues with airport authorities and oil companies, there is concern that they may be compromising on passenger safety as well. A worried government is now looking into the possible fallout of the poor financial health of airlines, especially on aircraft maintenance and spares.
The civil aviation ministry has asked chief of the Directorate General of Civil Aviation (DGCA), Nasim Zaidi, to direct all airlines to submit their latest financial details. It's also planning to set up an economic division within the DGCA to monitor airlines' finances and their likely impact on air safety. The ministry's financial adviser is likely to be a member of this division, along with the DGCA chief.
Alarming stories are popping up in the aviation sector worldwide, and Indian carriers are no exception. One of India's largest private airlines sent its widebody plane to Malaysia for maintenance checks. The repair company locked up the plane in a hangar for a week as the airline had not cleared its dues. Planes parked in hangars without engines or tyres are becoming an increasingly common sight at airports. With airlines reducing fleets, unused planes are being stripped for parts to keep the remaining ones airworthy.
Indian carriers are expected to post a loss of over Rs 9,000 crore this year. Over 60% of this is likely to come from the big three--the Air India-Indian Airlines, Kingfisher-Deccan and Jet-JetLite combines.
The DGCA is likely to seek airlines' financial status reports under a rule of the International Civil Aviation Organisation that lists, among 35 other issues, financial viability as one of the key factors for the continued operation of an airline. In the past few months, the aviation ministry's honeymoon with fliers-triggered by low-cost flights-has turned sour.
03/05/09 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General May 2009, Safety May 2009