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

A 19th-century pilgrim’s progress

The Travels of a Sadhu in the Himalayas By Jaladhar Sen (Translated by Somdatta Mandal) Speaking Tiger Books, 259 pages, ₹499.00  

India faces critical shortage of skin donors amid rising burn cases

India reports nearly 70 lakh burn injury cases every year, resulting in approximately 1.4 lakh deaths annually. Experts estimate that up to 50% of these lives could be saved with adequate access to skin donations.   A significant concern is that around 70% of burn victims fall wi

Not just politics, let`s discuss policies too

Why public policy matters Most days, India`s loudest debates stop at the ballot box. We can name every major leader and recall every campaign slogan. Still, far fewer of us can explain why a widow`s pension is delayed or how a government school`s budget is actually approved. That

When algorithms decide and children die

The images have not left me, of dead and wounded children being carried in the arms of the medics and relatives to the ambulances and hospitals. On February 28, at the start of Operation Epic Fury, cruise missiles struck the Shajareh Tayyebeh school – officially named a girls’ school, in Minab,

The economics of representation: Why women in power matter

India’s democracy has grown in scale, but not quite in balance. Women today are active participants in elections, influencing outcomes in ways that were not as visible earlier. Yet their presence in legislative institutions continues to lag behind. The Nari Shakti Vandan Adhiniyam was meant to addres

India will be powerful, not aggressive: Bhaiyyaji

India is poised to emerge as a global power but will remain rooted in its civilisational ethos of non-aggression and harmony, former RSS General Secretary Suresh `Bhaiyyaji` Joshi has said.   He was speaking at the launch of “Rashtrabhav,” a book by Ravindra Sathe


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter