Mumbai: The decision of the U.S. Federal Aviation Administration (FAA) to downgrade India to Category 2 under its International Aviation Safety Assessment programme will have cascading effect on Indian carriers though Air India and Jet Airways, which fly to the U.S, would be affected immediately.
Centre for Asia Pacific Aviation (CAPA) has come out with an exhaustive report stating that the downgrade will result in all Indian airlines witnessing cost escalation due to enhanced risk profile.
“All Indian carriers could potentially suffer from higher lease rates, more stringent maintenance covenants, and increased insurance premiums as a result of a perceived increase in risks,” said Kapil Kaul, CEO, South Asia, CAPA.
“The possibility exists that other jurisdictions (countries) may raise their own concerns about safety oversight in India (after the FAA action), which could have a much greater impact on Indian carriers,” he added.
05/02/14 Lalatendu Mishra/The Hindu
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Centre for Asia Pacific Aviation (CAPA) has come out with an exhaustive report stating that the downgrade will result in all Indian airlines witnessing cost escalation due to enhanced risk profile.
“All Indian carriers could potentially suffer from higher lease rates, more stringent maintenance covenants, and increased insurance premiums as a result of a perceived increase in risks,” said Kapil Kaul, CEO, South Asia, CAPA.
“The possibility exists that other jurisdictions (countries) may raise their own concerns about safety oversight in India (after the FAA action), which could have a much greater impact on Indian carriers,” he added.
05/02/14 Lalatendu Mishra/The Hindu
