Airlines don’t have to disclose financial information: DGCA

Airlines, especially unlisted ones, can now heave a sigh of relief. The Directorate General of Civil Aviation (DGCA) has clarified that it has no intention of seeking airlines’ balance sheets as part of a civil aviation requirement (CAR) issued recently seeking detailed financial information from all airlines. According to this CAR, extensive financial details are to be submitted by all airlines to DGCA.
The regulator has also made it clear, any further expansion of fleet and operations, including grant of ‘air operator’s permit’ for all airlines shall be subject to mitigation of potential risk factors identified by the operator during the financial surveillance, to the satisfaction of DGCA.
But, in reply to a specific query from DNA Money on Monday, DGCA director Lalit Gupta said “There is no clause in the CAR wherein airlines are required to disclose their financial status, i.e: balance sheet, to DGCA.”
Gupta said that among all scheduled airlines, only Jet Airways forwarded its comments on the CAR, while making it clear that DGCA has powers to issue CAR and there was no question of “seeking agreement of the airlines (for this purpose).”
As per the CAR, airlines must submit financial details such as instances of sale of assets, deferment of discretionary spending-capital expenditure, training, advertising, also if an airline has lost valuable suppliers within 12 months.
03/08/10 Mayank Aggarwal, Sindhu Bhattacharya/Daily News & Analysis

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Categories: Indian Aviation- In General Aug 2010