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Thursday 17 July 2014

DGCA doing financial audit of airlines

New Delhi: Worried at the crippling cash crunch faced by Indian airlines, the aviation regulator is doing their financial audit to ensure that only carriers with funds to fly safely stay in the business. The directorate general of civil aviation (DGCA) had recently asked all Indian carriers to submit their financial details and answer a list of questions like if they are buying spares or cannibalizing planes and are they paying salaries in time.


The airlines have now submitted their replies and the regulator is examining them. The financial health of one particular low-cost carrier (LCC) is especially a suspect and its name may be thrown up as an airline with "substantial findings". Such airlines have two options — either shrink to operate a smaller fleet with full safety or shut down.
Read news in full 16/07/14 Saurabh Sinha/Times Of India

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