DGCA seeks independence of AI Express

Aviation regulator suggested this after finding lack of understanding between Air India Express and Air India.

sweta-ranjan

Sweta Ranjan | January 31, 2012



The Directorate General of Civil Aviation (DGCA) in its audit report has recommended that the Air India Charters Ltd (AICL), the company which runs Air India Express, be made an “independent airline without any interference from Air India (AI)."

The aviation regulator suggested this after finding lack of understanding between the two airlines -- Air India Express and Air India.

The report suggests, “Increasing interference by AI in affairs of AICL is proving detrimental in the overall growth of the airline. Also, dual control is neither in the interest of air safety nor allows independence.”
The regulator has suggested giving financial autonomy to the low-cost brand of AI operating in the international sector, Air India Express. 

“From safety perspective, it is imperative that M/s AICL be given financial autonomy,” the financial audit report said.
According to the agreement the airline shares 25 percent of the revenue with AI, the parent company.
An official from the airline said, “The reason for this financial mess in AI Express is mainly due to the interference of the parent company. Due to AI Express dependence on its parent company for pilots and other administrative staff, the airline is suffering.

For good health of the Express, regulator has made various recommendations. “Airline should not be used as a training academy but as a commercial venture. There should be fixed tenure in cases of deputation from parent airline. Minimum period in respect of the training captains to serve the airline should also be defined.”
AI Express operates in West Asian and Southeast Asian countries with its base in central Kerala’s Kochi. The airline operates 204 flights a week connecting 14 international destinations.
AI Express has an equity base of Rs 30 crore. It operates 21 Boeing 737-800 aircraft (17 owned by the company and the rest on lease)

AI Express is also cash-strapped and has incurred losses of Rs 1,105 crore. The airline is likely to incur losses of Rs 430 crore in the current financial year and is burdened with a debt of over Rs 3,687 crore.
 

Comments

 

Other News

What exactly is the true purpose of business?

Invaluable By Somik Raha IndiePress, 316 pages, Rs 701 From coding at age 12 to a deep dive into philoso

Yoga Day has changed perceptions about it in ten years: PM

The expanding awareness of Yoga over the past ten years has changed perceptions associated with it, prime minister Narendra Modi said in Srinagar on Friday on the occasion of the International Day of Yoga.   “Yoga is now emerging beyond limited boundaries. The world is witnessing t

Listening to tomorrow: The imperative for youth-driven data in India

Over a decade and a half ago when I was still a student, millennials felt the burning need to break down the barriers of gatekeeping in traditional media. Young voices, brimming with ideas and opinions, were often sidelined, their perspectives deemed too marginal or unrefined for mainstream discourse. This

Israel-Palestine War: Lessons from Past Peace Efforts

Israel-Palestine War: Give Peace a Chance By Dr. Joseph K. Thomas IndiePress, 243 pages, Rs 399 T

How inner work helps subvert painful narratives

Unashamed By Neha Bhat HarperCollins, 240 pages, Rs 499   * How do I connect better with my partner? *&nbs

Heatwave spikes power demand: measures taken to ensure supply

The Northern Region has been experiencing high power demand conditions due to a prevailing heat wave since May 17. Despite these challenging conditions, the highest ever peak demand of 89 GW in the Northern Region was successfully met on June 17. This achievement was made possible by import

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter