Sunday, May 30, 2010

Government to enforce checks on airline cost cuts at expense of safety

With the Mangalore aircrash in mind, the government is preparing detailed rules and guidelines to ensure that loss-making airlines do not cut costs on safety front while trying to reduce their financial burden, official sources said.
If an airline does not meet these rules and procedures, after they come into effect, its Air Operator’s Permit (license to run air operations) as also future expansion of fleet and operations, could be affected, the sources warned.
With mounting losses, many Indian carriers have started reducing flights, laying off employees and rationalising their route structure. There have also been cases where leased aircraft of certain private carriers have been taken over by lessors or airlines denied any credit on lifting of jet fuel from oil marketing firms.
Noting that some airlines have been in distress over financial or operational issues, the government is trying to “ensure that safety oversight functions are not affected“.
They said the “unfavourable trends” being witnessed in some of the airline operators’ financial conditions could be identified by factors like lay-offs, delays in paying salaries, reduction of safe operating standards, inadequate maintenance of aircraft, shortage of supplies and spares or sale of aircraft or other major equipment.
30/05/10 The Hindu
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