The Federal Aviation Administration in the United States downgraded India’s aviation safety ranking from Category I to Category II, the Directorate General of Civil Aviation said Friday. A Category II ranking means DGCA does not meet international civil aviation standards in areas of “technical expertise, trained personnel and record keeping”. The downgrade will impact Indian carriers such as Jet Airways and Air India, which fly to the US, barring them from expanding their services further in the world’s biggest aviation market, till further notice. Apart from impacting US expansion plans of Indian carriers present there, the downgrade also affects code-sharing agreements that companies of Category II countries may have. Such a rating for a country may lead to other troubles for its carriers as their flights may be subjected to closer scrutiny and checks, which could lead to difficulty in adhering to schedule. Leasing and borrowing costs for such carriers could also go, putting further stress on their balance sheets.
“This is a national embarrassment,” said Kapil Kaul, CEO – South Asia at CAPA. The Sydney-based aviation consultancy had in a 2012 study warned of an impending downgrade for DGCA.
Read News In full 31/01/14 Moneycontrol.com
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