Stressed airlines to be under DGCA lens

New Delhi: Aircraft of financially-strained airlines are set to come under the scanner to ensure that the crippling cash crunch does not lead to compromises with safety. The Directorate General of Civil Aviation (DGCA)'s "financial surveillance from safety perspective" is in final stages after which some airlines would be termed 'distressed' and their operations will be subject to thorough scrutiny.
DGCA is also scanning the operations from safety side of the few well off airlines and they too may come under scrutiny.
The civil aviation requirement (CAR) under which this surveillance is being carried out lists some examples of trends that indicate an airline's failing finances. These include: Delay in paying salaries; demands of cash-and-carry by agencies that earlier gave credit; curtailing flights; and significant turnover of personnel - all common in today's airline world.
09/12/11 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Dec 2011, Safety Dec 2011