Thursday, October 11, 2012

DGCA's enforcement powers remain on paper

Mumbai/Delhi: Directorate General of Civil Aviation may have been slow to act against Kingfisher Airlines but the regulator's notice to the airline last week comes as an acknowledgement that financial crisis does have an impact on safe and reliable air transport.
Else where in the world, civil aviation authorities enhance audits and bring airlines under greater scrutiny. There are instances of  airlines being fined for not adhering to schedules and Mexican government had suspending permits  of three airlines (AeroCalifornia, Avolar and Aviasca)  in 2008-09  for unpaid air traffic dues amongst other things. The three airlines never took to skies again.
Last week the U.S. Department of Transportation (DOT) fined Xtra Airways for violating rules protecting passengers when their public charter flights are suddenly canceled, and ordered the carrier to cease and desist from further violations. Xtra Airways was one of several carriers operating flights for Direct Air, a charter operator which ceased operations in March.
In the US  the Federal Aviation Administration (FAA) is the safety regulator. The financial regulator is the Department of Transportation.
Whenever an airline is in financial stress the FAA increases the surveillance of that airline. The FAA is seeking USD 162 million in civil penalties from American Airlines which declared bankruptcy earlier this year. The penalties pertain to 36 instances of safety violations such as failure to perform repairs and mechanics putting aircraft into service with inoperable equipment.
11/10/12 Anees Phadnis/Disha Kanwar/Business Standard
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