NEW DELHI: As losses of airline's mount, the aviation regulator is planning to conduct a financial audit of Indian carriers to check if their poor fiscal health is not affecting safety of passengers. A senior directorate general of civil aviation (DGCA) official said the audit could start next month itself.
The DGCA has conducted these audits in the past too. The audit conducted in 2011-end identified Kingfisher as a distressed airline, which eventually shut down in October 2012. In this audit, the regulator asks Indian carriers to submit their financial details and answer a list of questions like if they are buying spares or cannibalizing planes and if they are paying salaries in time. An airline with "substantial findings", read which is proven to be in financial distress, has two options — either operate a smaller fleet with full safety or shut down.
16/04/2015/Saurabh Sinha/timesofindia
To Read the News in full at Source, Click the Headline
The DGCA has conducted these audits in the past too. The audit conducted in 2011-end identified Kingfisher as a distressed airline, which eventually shut down in October 2012. In this audit, the regulator asks Indian carriers to submit their financial details and answer a list of questions like if they are buying spares or cannibalizing planes and if they are paying salaries in time. An airline with "substantial findings", read which is proven to be in financial distress, has two options — either operate a smaller fleet with full safety or shut down.
16/04/2015/Saurabh Sinha/timesofindia
